Sugar imports continue to make commercial sense even as domestic prices of the sweetener soften, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) President Niraj Shirgaokar said on Wednesday.
His comments come against the backdrop of firming global sugar prices, after India, the world’s second-largest sugar producer, last month permitted duty-free imports to shore up domestic supplies and keep retail prices in check ahead of the festival season.
“Imports are still viable despite declining domestic prices,” Shirgaokar told reporters on the sidelines of the fourth edition of The India Sugar & Bio-Energy Conference 2026.
Ex-mill prices have fallen to Rs 43-44 a kg from a peak of Rs 65-67 a kg recorded two weeks ago, he said, adding 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.
According to sources, mills have so far applied to import 8 lakh tonnes of the permitted quantity. However, they are now worried about the viability of these imports, as global prices have risen sharply amid tightening supplies and the start of Indian purchases.
Besides opening the import window, the government has also tightened stock-holding norms on bulk users and dealers to curb hoarding.
ISMA said it has flagged to the government the operational challenges mills are likely to face with early crushing.
“We have apprised the government of the difficulties mills might face in starting early crushing. Discussions with the government are ongoing,” Shirgaokar said, adding 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.
The government, meanwhile, has accused mills of “jacking up” prices, maintaining that the country has adequate stocks. It has, however, 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.
