New Delhi : Sugar production in India during the current October-September season is estimated at around 306 lakh tonnes, about 11% lower than the initial projection of 343 lakh tonnes made by sugarcane-growing states, the government said on Friday. The government also rejected claims that diverting sugar for ethanol production has reduced domestic availability and contributed to rising sugar prices. It said the quantity of sugar being diverted for ethanol production is now lower than it was a few years ago.
Officials, however, said the carry-over stock would be sufficient to meet demand until fresh sugar from the new crushing season starts reaching the market. The comments came a day after govt allowed duty-free import of 10 lakh tonnes of raw sugar to address supply concerns. Retail sugar prices rose sharply to Rs 58.2 per kg Friday, 20% higher than a month ago and nearly 26% higher than a year ago. The food ministry said the increase in sugar prices was due to a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the crop, tightening global supplies and speculation and hoarding by some sections.
Officials said excess rain in Maharashtra last Oct, and Red Rot and Top Borer disease in sugarcane crop in UP and Maharashtra had impacted production. They added there were initial indications of a fall in production in Jan, but mills were still crushing. Export started only in March and as soon as there were indications production would be less, export was banned early May,” said a source. Govt also said that the tightening of sugar supplies is a global phenomenon while citing that global sugar deficit for 2026-27 is estimated at around 33 lakh tonne.
Chopra informed that he held a meeting with all the major sugar-producing states. “They have also been told to be in readiness to start the sugar crushing early around 15th of October. We have also told them to come down heavily on the black marketers, hoarders and speculators,” he said. The secretary said the government is also considering tightening the stock-holding limits for dealers, which are currently set at 400 tonnes. Regarding the stock limit on bulk users, the secretary said it could be a little inconvenient for them. From September 1, bulk consumers will also be barred from holding stocks exceeding 15 days of consumption.
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