Amid a sharp rise in sugar prices, the government has tightened rules for imported raw sugar to ensure faster availability in the domestic market and prevent hoarding. Under the revised conditions, imported raw sugar must be converted into refined sugar within two months, and the refined product must also be sold within the same period.
The Commerce and Industry Ministry’s notification replaces the earlier requirement, which asked importers to process sugar within a reasonable period and ensure its domestic sale by October 31.
The government has already permitted imports of 10 lakh tonnes of sugar by October 31 and imposed stock limits on traders and bulk consumers, including soft-drink and ice-cream manufacturers. States have also been directed to act against hoarding and black marketing.
The move comes as sugar prices have climbed sharply. Government data showed the average retail price at Rs 63.05 per kg on Monday, up from Rs 48.73 a month earlier. Food Secretary Sanjeev Chopra said ex-mill prices had also jumped from Rs 47-48 to around Rs 62 per kg within seven to 10 days.
The government has blamed pest attacks and excess rainfall for lowering sugar production estimates to 306 lakh tonnes for 2025-26, from an earlier estimate of 343 lakh tonnes.
Meanwhile, the Indian Sugar and Bio-Energy Manufacturers Association said India does not face a sugar shortage and expects prices to ease following the latest measures.
The government has also rejected claims that ethanol diversion is solely responsible for the price rise, saying the policy has strengthened the sugar industry’s finances and supported timely payments to farmers.
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