NEW DELHI: The Central Government stated that India maintains sufficient sugar reserves to fulfill domestic requirements, despite overall production projections falling slightly below initial estimates. The Ministry of Consumer Affairs, Food and Public Distribution confirmed that it is actively monitoring market trends and has introduced regulatory measures to curb recent price increases and maintain market stability.
The Ministry clarified that recent price fluctuations are not linked to ethanol blending, as the proportion of sugar utilized for ethanol production declined from approximately 12% in 2022–23 to around 9%. At present, nearly three-fourths of domestic ethanol is derived from grains, particularly maize. Total sugar output for the current season is projected at roughly 30.6 million tonnes. Lower yield forecasts, seasonal festive demand, adverse weather conditions, global supply constraints, and speculative hoarding were identified as primary drivers of market inflation.
To counter speculative practices and ensure smooth supply, administrative limits have been placed on inventories. Regulators established a 400-tonne stock ceiling for sugar traders and dealers nationwide through November, alongside a restriction preventing bulk consumers from holding inventories exceeding a 15-day operational requirement.