Amid rising sugar prices ahead of the festive season, the government has permitted zero-duty imports of one million tonnes of raw sugar until October 31. While the Indian Sugar Mills Association states there is no shortage and stocks are adequate, retail prices have surged up to 65 rupees per kilo in parts of the country. A key driver of the price hike is the diversion of sugarcane output toward the government’s ethanol blending program. To control the market, New Delhi has banned sugar exports until September 30 and imposed inventory limits on bulk consumers using over 10 metric tonnes monthly.
