Sugar Imports : India may have to import sugar again after about 10 years. Amid rising sugar prices in the domestic market, the government is preparing to import about 1 million tonnes of raw sugar duty-free. The aim is to increase the country’s sugar supply and curb rising prices to some extent.
The ex-mill price of sugar in Maharashtra, that is, the price at the time it leaves the mill, is around Rs. 5,400-5,560 per quintal has gone up. Sugar prices have increased sharply since March 2026. The increase in sugar prices comes ahead of the festive season, during which sugar consumption in the country increases significantly.
Why was there a shortage of sugar?
According to experts, the biggest reason for the rise in sugar prices is lack of stock in mills. In the 2025-26 season, which began in October 2025, sugar consumption in the country exceeded production. This gradually reduced the stock available in the mills. According to some experts, the government had also approved the export of 1.5-2 million tonnes of sugar depending on the production estimate. Later this number was increased to 2 million tonnes. However, before the export ban, around 8,00,000 tonnes of sugar had been exported from the country. Now, preparations are underway to import almost the same amount of raw sugar.
As early as March, signs of crisis appeared
According to media reports, the sugar supply crisis began to emerge as early as March 2026. Many mills found it difficult to supply the required quantity of sugar to the local market every month. However, initially the price hike was ignored. Now, with the festive season approaching, the demand for sugar is expected to increase further. Due to this, the government is forced to resort to imports. India last imported raw sugar in the 2016-17 season. This meant that after almost a decade, the country could again buy sugar from the foreign market.
How much sugar is available in the country?
As per estimates, India’s actual sugar production in the 2025-26 season, excluding sugar used for ethanol production, was around 27.9 million tonnes. A remaining stock of about 47 million tonnes existed at the start of the season, bringing the total availability to around 3.26 million tonnes. This year sugar consumption is estimated to be around 2.8 million tonnes.
Under normal conditions, there should have been enough stock left even after this. However, when exports of around 8 lakh tonnes are taken into account, the remaining stock comes down to around 35 – 39 million tonnes. This increases the risk of sugar shortage early in the next season. In general, India finds it best to maintain a closed stock of around 60 million tonnes, which is about three months of consumption.
Will imports make sugar cheaper?
The government is preparing to import about 10 million tonnes of sugar, but this does not mean that the price of sugar in the market will come down sharply. Experts estimate that prices may fall by a maximum of Rs.500 per quintal. However, the situation is not too dire for sugar mills, as the cost of production is around Rs 4,200-4,300 per quintal. Meanwhile, the news of India’s imports has also had an impact on the international market. New York raw sugar prices hit a 14-month high of 17.47 cents a pound.