Sugar Imports Still Viable Despite Domestic Price Fall: ISMA

Sugar imports continue to make commercial sense despite a sharp decline in domestic sugar prices, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) President Niraj Shirgaokar said on Wednesday, as global prices remain firm amid tightening supplies. Speaking on the sidelines of the fourth edition of The India Sugar & Bio-Energy Conference 2026, Shirgaokar said the recent decline in domestic prices has not yet made imports unviable.

“Imports are still viable despite declining domestic prices,” Shirgaokar. Ex-mill sugar prices have fallen sharply to around Rs 43-44 per kg from a peak of Rs 65-67 per kg recorded about two weeks ago. Shirgaokar said the decline is expected to gradually reflect in retail prices, with the impact likely to become visible over the next one to two weeks.

The comments come after the government last month permitted duty-free imports of 10 lakh tonnes of sugar to strengthen domestic supplies and prevent a sharp rise in retail prices ahead of the festival season. According to sources, sugar mills have so far applied to import around 8 lakh tonnes of the permitted quantity. However, the sharp rise in international sugar prices following India's decision to open the import window has raised concerns among mills about the commercial viability of these purchases.

India, the world's second-largest sugar producer, has opened imports as part of a broader set of measures aimed at keeping domestic supplies adequate and containing retail prices. The government has also tightened stock-holding norms for bulk consumers and dealers to discourage hoarding and ensure sufficient availability in the market.

Meanwhile, ISMA has raised concerns with the government over operational challenges that sugar mills could face if crushing operations begin earlier than usual. The association has flagged the issue as mills assess the implications of early crushing amid changing market conditions. The sugar industry is now closely watching global prices, domestic production prospects and retail demand as the festival season approaches.

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