India Urges Sugar Mills to Maintain Festival Supplies and Stable Prices

India has directed sugar mills to ensure adequate supplies during the upcoming festival season and keep prices at reasonable levels, a food ministry official said. The government warned that it could take corrective measures if prices rise sharply. Sugar prices recently reached a record high, prompting India to approve duty-free imports of 1 million metric tons.

The government said the recent price surge was driven largely by hoarding rather than increased consumer demand. Sugar prices have eased from last month’s peak but remain around 20% higher than two months ago. India, traditionally a sugar exporter, is also importing sugar from Brazil for the first time in nearly a decade to strengthen domestic supplies.

Sugar consumption normally increases between August and November as festivals such as Ganesh Chaturthi, Dussehra and Diwali boost demand for sweets and confectionery. To monitor the market more closely, the government plans to track sugar production and sales each month and has asked mills to submit accurate data. So far, applications have been received to import 800,000 metric tons under the duty-free quota.

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