Govt Urges Sugar Mills to Ensure Adequate Supplies Ahead of Festive Season
The government has directed sugar mills to maintain sufficient stocks and keep prices stable as demand is expected to rise during the festive season.
The government has asked sugar mills to ensure adequate availability of sugar in the domestic market and keep prices under control during the upcoming festive season. Authorities have also indicated that corrective action could be taken if prices increase without sufficient justification.
The directive comes after domestic sugar prices reached a record high last month amid concerns over supplies. To improve availability and ease price pressures, the government allowed duty-free imports of up to 1 million metric tonnes of sugar.
Food ministry joint secretary Ashwini Srivastava said the recent increase in prices was not driven by a sudden surge in consumer demand. According to him, some sugar was being held back in anticipation of higher prices during the festival period, contributing to the rise in market prices.
Sugar prices have eased from last month's peak in recent days, but they remain nearly 20% above levels seen two months earlier. The government is therefore asking the industry to ensure sufficient supplies reach the market and that prices remain reasonable as festive consumption picks up.
Sugar demand generally rises between August and November, when festivals including Ganesh Chaturthi, Dussehra and Diwali lead to increased purchases of traditional sweets and confectionery. With consumption expected to strengthen during this period, authorities are monitoring production, inventories and market prices to avoid supply-related disruptions.
India, normally a significant sugar exporter, has also turned to overseas supplies to strengthen domestic availability. The country is importing sugar from Brazil for the first time in nearly a decade after the government approved duty-free imports under the 1-million-tonne quota.
Applications have so far been received for imports of around 800,000 metric tonnes under the duty-free arrangement, according to Srivastava. The additional supplies are expected to help ease pressure on the domestic market during a period of higher seasonal demand.
The government also plans to monitor the sugar sector more closely through monthly production and sales data. Sugar mills have been asked to submit accurate information on their output and sales, allowing authorities to assess supply conditions and respond more quickly if shortages or unusual price movements emerge.
