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Informist, Friday, Aug. 21, 2026

 

MUMBAI – India Ratings and Research believes the government's duty-free imports of 1 million tonnes of raw sugar will help ease near-term supply tightness and moderate the recent rally in domestic sugar prices ahead of the festive season. The government's decision to allow duty-free imports under a Tariff Rate Quota until Oct. 31 could raise sugar availability by around 15% during Sept–Nov, the peak festival season, the research agency said in a release Friday. 

 

"Given the average domestic sugar quota allocations of around 7 mnt (million tonnes) during September-November over the past three to four years, the permitted imports have the potential to increase market availability by around 15% during the period," it said. 

 

The imports would restore inventories closer to normative levels and improve sugar availability during the peak consumption period, said Khushbu Lakhotia, director of India Ratings and Research. However, the measure is a temporary supply-management intervention and is unlikely to materially change the sugar sector's fundamentals in the ongoing financial year, she added.

 

Amid imports, domestic sugar prices are likely to correct from record highs, but remain healthy. Prices will remain supported by tight inventories, rising sugarcane procurement costs, and uncertainty about sugar production in the 2026-27 season, India Ratings said. 

 

India's sugar inventories are expected to fall to around 4.5 million tonnes as the 2025-26 sugar season ends Sept. 30, below the normative requirement of around 5.5 million tonnes, it said. The permitted imports are expected to lift opening stocks for the new season closer to normal levels.

 

India Ratings and Research said the import window is likely to remain temporary and is unlikely to continue. Going ahead, policy decisions on sugar diversion towards ethanol production will be a key factor for domestic sugar availability in the upcoming season.  End

 

Reported by Khushi Singh

Edited by Avishek Dutta

 

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