India Weighs Duty-Free Imports to Curb Sugar Inflation

Government insiders indicate that policymakers are evaluating a multifaceted approach to dampen price volatility. Potential actions include modifying monthly sales allocations for mills and reducing import duties to entice foreign supply. The urgency stems from seasonal demand spikes surrounding Ganesh Chaturthi and Diwali, which traditionally strain national inventory levels.

Ashok Jain of the Bombay Sugar Merchants Association noted that local supplies remain critically tight, creating an immediate need for external imports to bridge the deficit. Beyond imports, the government may restrict the volume of sugarcane diverted toward ethanol production starting this October, effectively prioritizing sugar output to ensure grocery shelves remain stocked.