Sugar Prices Hit Record Highs in India Amid Supply Tightness

Sugar prices in India have reached record highs due to severe supply tightness and concerns over the impact of El Niño on the upcoming sugarcane crop. Despite government efforts to curb price increases, domestic sugar prices have surged by ₹100-200 per quintal across major spot markets.

The Directorate of Sugar & Vegetable Oils (DSVO) has directed all sugar mills to ensure that buyers lift purchased sugar stocks within seven days of sale, warning of legal action against mills found engaging in speculative practices. However, these measures have so far failed to ease market tightness.

Indian sugar prices have now reached import parity at zero import duty, making imports increasingly viable if international prices remain competitive. Market participants are closely watching the government's stance on sugar imports, with any decision to allow duty-free or reduced-duty imports likely to improve domestic availability and moderate price increases.