Keeping in view the strong demand for sugar for upcoming festivals of Onam, Raksha Bandhan, and Krishna Janamashtami, additional quota of 2 LMT (over and above 23.5 LMT already allocated for the month of August, 2023) is being allocated for the month of August, 2023. The additional sugar in domestic market will ensure reasonable prices all over the country.
According to the press release issued by government, despite 25% increase in international sugar prices in last one year, the average retail price of sugar in the country is about ₹ 43.30 per kg and is likely to remain in range bound only. There has been less than 2% annual inflation in the country in sugar prices in last 10 years.
During the current Sugar Season (Oct-Sep) 2022-23, India is estimated to have production of 330 LMT sugar after diversion of about 43 LMT for ethanol production. Domestic consumption is expected to be around 275 LMT.
At present stage, India has sufficient sugar stock to meet its domestic demand for remaining months of current SS 2022-23 and optimum closing stock of 60 LMT (sufficient to meet sugar consumption for 2 ½ months) will be available at the end of this season i.e. 30.09.2023.
Recent increase in sugar prices will cool down soon as each year during Jul-Sep, just before next season, prices increase and then come down on start of cane crushing. Thus, price rise in sugar is very nominal and for short duration.