COMMODITY
Sugar imports still make commercial sense even as domestic prices soften: ISMA
Sep-10-2026

Indian Sugar and Bio-Energy Manufacturers Association (ISMA) President Niraj Shirgaokar has said that sugar imports continue to make commercial sense even as domestic prices of the sweetener soften. His comments come against the backdrop of firming global sugar prices, after India last month permitted duty-free imports to shore up domestic supplies and keep retail prices in check ahead of the festival season.

He said ex-mill prices have fallen to Rs 43-44 a kg from a peak of Rs 65-67 a kg recorded two weeks ago, and added that the impact on retail prices will take another one to two weeks to become visible. Among a slew of measures to rein in prices, the government last month allowed duty-free imports of 10 lakh tonnes of sugar.

ISMA said it has flagged to the government the operational challenges mills are likely to face with early crushing. Shirgaokar said, 'We have apprised the government of the difficulties mills might face in starting early crushing. Discussions with the government are ongoing.' He added that the industry remains optimistic about the outlook for the coming year on both production and ethanol allocation, even as it awaits clarity on the next crushing season.

Meanwhile, the government has accused mills of 'jacking up' prices, maintaining that the country has adequate stocks. However, it has lowered its production estimate for the 2025-26 marketing year (October-September) to 306 lakh tonnes, from an earlier forecast of 343 lakh tonnes. Annual domestic demand is pegged at 280-285 lakh tonnes.


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