Government Assures Adequate Sugar Stocks To Meet Domestic Demand

The Government has assured that adequate sugar stocks are available in the country to meet domestic demand, despite lower-than-estimated production. In view of the recent rise in sugar prices, the Government has taken a series of measures to ensure sufficient sugar availability and maintain stable prices for consumers. The Ministry of Consumer Affairs, Food and Public Distribution said it is closely monitoring the situation. Sugar prices have risen in recent weeks, increasing from 48 rupees per kilogram on the 20th of last month to around 55 rupees per kilogram on 19th August.

The Ministry said that attributing the recent increase in sugar prices to the diversion of sugar for ethanol production is not correct. It said the share of sugar diverted for ethanol has declined from around 12 per cent in 2022-23 to around 9 per cent in 2025-26. The Ministry highlighted that nearly three-fourths of the ethanol produced in the country now comes from grains, particularly maize.

The present increase in sugar prices is due to a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugarcane crop, tightening global sugar supplies, and speculation and hoarding by some sections of the industry. The Ministry informed that sugar production during the current season is expected to be around 306 lakh tonnes, compared to the initial estimate of around 343 lakh tonnes by sugarcane-growing States.

The Government has observed that speculation and hoarding by some sugar mills and traders have also contributed to the recent price increase. A stock limit of 400 tonnes has been imposed on sugar dealers across the country from 1st August to 30th November this year. Besides, bulk consumers will not be permitted to hold sugar stocks exceeding 15 days of consumption from 1st September.

States and sugar mills have been advised to begin crushing from 15th October. This is expected to raise October sugar production from the usual 3-4 lakh metric tonnes to more than 10 lakh metric tonnes, further improving availability during the festive season.