Overview
- The centre opened a 1 million‑tonne duty‑free import quota (about 0.8 mt allocated), opened a raw‑sugar import window, tightened stockholding limits for dealers and kept exports restricted to boost supply.
- Wholesale and ex‑mill prices corrected sharply from a mid‑August spike, with industry reporting roughly a 30% fall in ex‑mill rates and official data showing the all‑India retail price down about 3.85% to Rs 62.57 per kg.
- Industry bodies ISMA and NFCSF say existing stocks, accelerated crushing and the import windows provide a sufficient physical cushion for the festive season and that mills are advancing crushing by 10–15 days.
- Retail prices are falling more slowly because many traders and retailers are still selling stocks bought at higher rates, and some state actions are giving direct relief such as Uttar Pradesh selling sugar at about Rs 50–52 per kg in Lucknow.
- The government revised 2025–26 production to about 306 lakh tonnes from 343 lakh tonnes, a shortfall that helped trigger the August spike and that makes continued monitoring of retail pass‑through and festival demand important.