Sugar prices in India have risen sharply in recent weeks, prompting the government to tighten rules and take steps to improve supplies ahead of the festive season.
The government has also taken steps to prevent hoarding. Stock limits have been imposed on sugar dealers, while bulk consumers have been asked to keep their stocks within limits. The role of ethanol has also become part of the debate. the government has rejected this explanation While opposition leaders have linked the price rise to sugar being diverted for ethanol production. The government’s latest measures are aimed at ensuring that there is enough sugar in the market and preventing further price increases.
To ease pressure on the market, the government has allowed duty-free imports of 10 lakh metric tonnes of raw sugar. The share of sugar diverted for ethanol has actually fallen from around 12 per cent in 2022-23 to about 9 per cent in 2025-26, according to the government.
The sudden rise in prices has raised concerns about a possible shortage, but the Indian Sugar and Mills Association (ISMA) has said there is no actual shortage of sugar in the country.
