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Informist, Wednesday, Sept. 9, 2026

 

--Renuka Sugars MD: Refineries may sell 250,000 tn sugar locally by Oct end

 

By Afra Abubacker and Upasika Singhal

 

NEW DELHI – India's port-based sugar refineries, which usually export processed sugar, are likely to divert 250,000 tonnes of sugar to domestic markets by the end of October to boost supplies ahead of the peak demand season, Shree Renuka Sugars Managing Director and Chief Executive Officer Susheel Kumar said. These supplies are under the government's one-time provision to convert the raw sugar already imported by Indian refineries for exporting refined sugar, he added. 

 

"In our day-to-day job, we import raw sugar from Brazil and others, and we export refined sugar. So, that work continues. Now, there are limited stocks in the country. The government is asking us if we can sell it in domestic markets to cover the gaps," Kumar said on the sidelines of the Indian Sugar & Bio-Energy Manufacturers Association's conference here Wednesday. Shree Renuka Sugars is India's leading sugar refiner, operating two units at Kandla, Gujarat, and Haldia, West Bengal. 

 

In August, New Delhi scrapped the 100% import duty on raw sugar and permitted mills to ship 1 million tonnes of the unrefined variety into the country by October end. However, to boost domestic supplies immediately and check the record-high sugar prices, the government asked Indian refineries to divert some supplies to local markets. Unlike mills, refineries have imported sugar that is under refining or produced as white sugar. 

 

Sugar prices had rallied since July, but rose sharply in August amid speculation that stocks could tighten by October, prompting panic buying ahead of the festival season. Ex-mill prices have risen to INR 6,000-6,400 per 100 kg in August from INR 4,600-4,800 in July. To control prices, the government allowed mills to import raw sugar at nil duty, and ex-mill sugar prices have been gradually declining as the option to import has removed the speculative premium built into sugar rates

 

Asked if 250,000 tonnes of sugar will adequately improve domestic supplies ahead of peak demand season, Kumar said it will avoid market fears of limited supply and prevent panic buying. Festivals such as Ganesh Chaturthi and Krishna Janmashtami fall in September. Demand is expected to peak ahead of Navratri, Durga Puja, and Dussehra in October, followed by Diwali and Chhath Puja in November.

 

Of the 1-million-tonne duty-free raw sugar import through tariff rate quota, mills have applied for nearly 800,000 tonnes in the first window. For the remaining 200,000 tonnes, the government has extended the application window till Sept. 8, according to industry experts. 

 

Though applications to import raw sugar were robust, Kumar said actual shipments would depend on the parity between the landed price of raw sugar and domestic sugar rates. Domestic players would have import parity only if local sugar prices are around INR 5,000 per 100 kg or above, Kumar said. Currently, only Uttar Pradesh markets are trading above INR 5,000, while Maharashtra is around INR 4,650-INR 4,850 per 100 kg. In Karnataka, prices are around INR 4,700-INR 4,900, and in Tamil Nadu, prices are INR 4,630-INR 4,800 per 100 kg, according to traders. End

 

Edited by Saji George Titus

 

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