Mills Told To Keep Prices Stable
New Delhi, September 10, 2026
The government has urged sugar mills to maintain adequate supplies and sell sugar at reasonable prices during the upcoming festive season to prevent further price increases.
Ashwini Srivastava, Joint Secretary in the Ministry of Food, said sugar prices had reached a record high last month. He attributed the rise mainly to hoarding in anticipation of stronger festive demand rather than a significant increase in consumption.
The government has warned that corrective measures may be taken if prices rise unnecessarily during the festive period. Sugar demand typically increases between August and November due to festivals such as Ganesh Chaturthi, Dussehra and Diwali, when demand for traditional sweets and confectionery rises.
India has also allowed duty-free imports of 1 million metric tonnes of raw sugar to improve domestic availability. The government has so far received applications for around 800,000 metric tonnes under the quota. India, which is generally a sugar exporter, is importing sugar from Brazil for the first time in nearly a decade.
Although domestic sugar prices have eased in recent days, they remain nearly 20% higher than two months ago. The government has therefore asked mills to provide accurate monthly production and sales data to support policy decisions and improve market monitoring.
The government is also taking steps to strengthen supplies ahead of the festive season. Sugar mills have been directed to begin crushing operations from October 15, nearly a month earlier than usual, while refiners are expected to divert a portion of refined sugar to the domestic market. (Reuters)
