Sugar refiners plan release of 2.5 lakh tonnes of white sugar to boost domestic supplies

New Delhi: Indian sugar refiners are preparing to sell around 2.5 lakh tonnes of white sugar in the domestic market as the government steps up efforts to increase supplies and keep sugar prices under control ahead of the festival season.Shree Renuka Sugars Managing Director and CEO Susheel Kumar said refiners have offered to sell around 2.5 lakh tonnes of sugar processed under the Advance Licensing Scheme (ALS) in India.He was speaking on the sidelines of an event organised by the Indian Sugar and Bio-energy Manufacturers Association (ISMA).Government Pushes More Sugar Into MarketIndia has two standalone sugar refineries, including Shree Renuka Sugars, which import raw sugar under the ALS, refine it and typically export the finished product.Ex-Mill Sugar Prices Drop 30%, Retail Rates Yet To Reflect The Decline However, the government last month directed these refiners to sell the ALS-refined white sugar in the domestic market to boost availability.The measures have already helped cool prices, according to Kumar. Domestic ex-mill sugar prices are currently around ₹43-44 per kg, below the estimated ₹50 per kg landing cost of imported sugar.Duty-Free Sugar Imports AllowedThe government has also permitted duty-free imports of 10 lakh tonnes of sugar to strengthen domestic supplies.Other measures include tighter stockholding limits for bulk consumers and dealers, while sugar exports had earlier been prohibited.Sugar Prices Fall After 1 Million Tonne Import Approval, Stock Limits Tightened The government has maintained that India has adequate sugar stocks and accused some mills of pushing prices higher.Sugar Production Estimate CutDespite the supply measures, the government has lowered its sugar production estimate for the 2025-26 marketing year to 306 lakh tonnes, compared with its earlier forecast of 343 lakh tonnes.India's annual domestic sugar consumption is estimated at around 280-285 lakh tonnes.The additional supply from refiners and duty-free imports could help improve availability and keep domestic sugar prices in check.

Indian sugar refiners are set to release 2.5 lakh tonnes of white sugar into the domestic market, aiming to meet rising demand and reduce costs before the upcoming festive season. Government initiatives have helped lower sugar prices at mills, and a new policy allows duty-free import of 10 lakh tonnes of raw sugar, prompting mills to start crushing early for better production outcomes.