Sugar prices have risen 16% in a month, reaching ₹55.70/kg by August 20. With the festival season ahead, supply concerns are intensifying
The Centre has allowed 1 million tonnes of duty-free raw sugar imports. But refining and shipping delays could limit how quickly supplies reach consumers
Sugar output is now estimated at 30.6 million tonnes, nearly 11% below the initial forecast, after excessive rain, waterlogging and crop diseases hit key states
Sugar diverted to ethanol has fallen from 12% in 2022-23 to 9% in 2025-26. Ethanol has nevertheless strengthened mill finances and supported timely farmer payments
India must distinguish between using surplus sugar for ethanol and encouraging more water-intensive cane cultivation
Climate volatility makes the latter increasingly difficult to justify
Faster imports, better crop forecasts and targeted stock checks are needed now. Over time, disease-resistant cane and greater maize-based ethanol can make supply more resilient