Indian sugar refiners plan to sell around 2.5 lakh tonnes of white sugar in the domestic market, adding to government efforts to boost supplies and bring down prices ahead of the festive season, Shree Renuka Sugars Managing Director and Chief Executive Susheel Kumar said on Wednesday.“We have offered to sell around 2.5 lakh tonne of ALS sugar in the domestic market,” Kumar told reporters on the sidelines of an event organised by the Indian Sugar and Bio-energy Manufacturers Association (ISMA), as quoted by PTI.Shree Renuka Sugars, which describes itself as India’s largest sugar refiner, operates two port-based refineries at Kandla in Gujarat and Haldia in West Bengal, with a combined refining capacity of 1.7 million tonnes a year.The move comes after the government directed refiners importing raw sugar under the advance licensing scheme (ALS) to sell the refined product in India instead of exporting it. The decision was aimed at increasing domestic availability at a time when sugar prices have risen sharply.Sugar prices cool at the mill gateSugar prices have already begun to ease at the mill level following a series of government measures.Ex-mill prices are now around Rs 43-44 per kg, Kumar said, below the estimated landed cost of imported sugar of around Rs 50 per kg.That marks a sharp reversal from the price surge seen earlier. All-India retail sugar prices had climbed to around Rs 64 per kg, almost 30 per cent above their level a month earlier and nearly 39 per cent higher than a year ago, according to government data.India’s sugar production for the 2025-26 marketing year is now estimated at around 306 lakh tonnes, down from the earlier projection of 343 lakh tonnes. Crop damage caused by erratic weather, including excess rainfall and waterlogging, as well as diseases such as Red Rot and Top Borer, has weighed on cane availability.At the same time, domestic consumption is estimated at around 280-285 lakh tonnes a year.Government opens import windowTo ease supply concerns, the government has allowed duty-free imports of 10 lakh tonnes of raw sugar under the Tariff Rate Quota system.The move is intended to improve availability ahead of the festive season, when demand typically rises as households, sweet shops and food businesses stock up.The government has also tightened stockholding limits for bulk consumers and dealers and stepped up inspections to check hoarding and speculative activity. It had earlier restricted sugar exports to protect domestic supplies.The measures have affected market expectations even before the imported sugar reaches the country. With the prospect of additional supplies, traders and mills have had less incentive to price in a prolonged shortage.The government is also trying to accelerate the arrival of fresh domestic production.Mills have been asked to begin crushing earlier, with the government expecting sugar production to increase sharply from October as the new crushing season gets under way.
