Prices had started to ease following the government's decision to allow duty-free imports of 1 mt of raw sugar and would weaken further over the next 7 to 10 days.
'The ethanol blended with petrol programme should not be halted or reconsidered.' 'India is not experiencing a structural sugar shortage, and the ethanol blending roadmap does not compete with food security or drive domestic price increases.'
'With factories starting early for the next season, fresh sugar will enter market 10-15 days earlier than usual, and sugar price are expected to remain affordable in near term.'
India's sugar consumption is projected to fall by nearly 400,000 tonnes in the 2025-26 season, primarily due to the ongoing liquefied petroleum gas (LPG) shortage exacerbated by the West Asia conflict and unseasonably cool weather.
The Indian government's decision to ban sugar exports until September 30 has drawn sharp criticism from the sugar industry and farmer leaders, who fear long-term negative impacts despite the stated aim of controlling domestic prices and ensuring availability.
Amid the political push and pull, the Centre's decision to allow sugar exports and remove the 50 per cent duty on molasses exports has rekindled hope in the industry that more relief may follow.
