India may cut sugar import duty to ease record domestic prices: Report
Ex-mill sugar prices in Maharashtra recently reached about ₹46 a kg, their highest level on record
- Aug 18, 2026,
- Updated Aug 18, 2026 1:55 PM IST
India is considering cutting or scrapping its 100% import duty on sugar as domestic prices hit a record high, Bloomberg reported on Tuesday, citing people familiar with the matter.
The move is aimed at increasing local supplies ahead of the festival season, when sugar consumption typically rises. Officials are weighing different proposals, but no decision has been taken, according to the report.
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Sugar Prices Hit Record
Ex-mill sugar prices in Maharashtra recently reached about ₹46 a kg, their highest level on record, according to the Indian Sugar and Bio-energy Manufacturers Association (ISMA).
Sugar consumption in India usually peaks from late August through January. Demand rises during the festival season for traditional sweets, processed foods and beverages.
India, the world's second-largest sugar producer, does not usually import sugar for domestic consumption. The last substantial imports were recorded in 2017-18, according to ISMA data.
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Supply Concerns Grow
The possible import-duty cut comes as concerns grow over global sugar supplies. The El Niño weather phenomenon is raising concerns about harvests and has pushed New York sugar futures to their highest level in about a year.
India is also facing weather-related concerns. Monsoon rains, which sugarcane crops depend on, are 13% below normal, according to the India Meteorological Department.
The deficit was more than 40% near the end of June, the first month of the rainy season, delaying the sowing of some crops.
Sugarcane had been planted on 5.83 million hectares as of August 14, slightly below the level at the same time last year, according to the farm ministry.
Government Moves To Boost Supply
Sugar factories in Uttar Pradesh and Maharashtra, India's top sugarcane-producing states, plan to start crushing 10 to 15 days earlier than usual. Crushing normally begins in early November.
The government has also imposed stockpile limits on traders to discourage hoarding and contain inflation risks.
India is considering cutting or scrapping its 100% import duty on sugar as domestic prices hit a record high, Bloomberg reported on Tuesday, citing people familiar with the matter.
The move is aimed at increasing local supplies ahead of the festival season, when sugar consumption typically rises. Officials are weighing different proposals, but no decision has been taken, according to the report.
Don't Miss: UP leads India in sugar, sugarcane and ethanol production; CM Yogi cites ₹3.23 lakh crore payouts
Sugar Prices Hit Record
Ex-mill sugar prices in Maharashtra recently reached about ₹46 a kg, their highest level on record, according to the Indian Sugar and Bio-energy Manufacturers Association (ISMA).
Sugar consumption in India usually peaks from late August through January. Demand rises during the festival season for traditional sweets, processed foods and beverages.
India, the world's second-largest sugar producer, does not usually import sugar for domestic consumption. The last substantial imports were recorded in 2017-18, according to ISMA data.
In Case You Missed It: 7UP is changing its taste after 15 years — & Gen Z has a lot to do with it
Supply Concerns Grow
The possible import-duty cut comes as concerns grow over global sugar supplies. The El Niño weather phenomenon is raising concerns about harvests and has pushed New York sugar futures to their highest level in about a year.
India is also facing weather-related concerns. Monsoon rains, which sugarcane crops depend on, are 13% below normal, according to the India Meteorological Department.
The deficit was more than 40% near the end of June, the first month of the rainy season, delaying the sowing of some crops.
Sugarcane had been planted on 5.83 million hectares as of August 14, slightly below the level at the same time last year, according to the farm ministry.
Government Moves To Boost Supply
Sugar factories in Uttar Pradesh and Maharashtra, India's top sugarcane-producing states, plan to start crushing 10 to 15 days earlier than usual. Crushing normally begins in early November.
The government has also imposed stockpile limits on traders to discourage hoarding and contain inflation risks.