Taking into account the substantial demand for sugar expected during the upcoming festival season, the government is allotting an additional 2 lakh metric tonnes for the month of August. This is in addition to the 23.5 LMT (Lakh Metric Tonnes) already allocated for this month.
According to official sources, the surplus sugar introduced into the domestic market will help maintain reasonable prices across the nation.
Even though there has been a 25 percent rise in international sugar prices over the past year, the average retail cost of sugar in the nation stands at approximately INR 43.30 per kg. It is expected to remain relatively stable within this range.
Sources indicate that the country has experienced an annual inflation rate of less than 2 percent in sugar prices over the past decade.
In the ongoing sugar season (October-September) of 2022-23, India is projected to achieve a sugar production of 330 million metric tonnes (LMT), taking into account the diversion of approximately 43 LMT for ethanol production. The anticipated domestic consumption is around 275 LMT.
In the ongoing sugar season (October-September) of 2022-23, it is projected that India will achieve a sugar production of approximately 330 million metric tonnes (LMT), accounting for the diversion of around 43 LMT for ethanol production. Anticipated domestic consumption is estimated to be around 275 LMT.
Currently, India possesses an ample supply of sugar to fulfill its domestic requirements for the remaining months of the ongoing sugar season 2022-23. By the conclusion of this season, which is on September 30, there will be an optimal closing stock of 60 million metric tonnes (LMT), ensuring a reserve sufficient to cover sugar consumption for two and a half months.
The recent surge in sugar prices is expected to subside shortly, following the usual pattern observed each year from July to September. This period, just before the start of the next season, typically sees a rise in prices, which then subsequently decrease with the commencement of cane crushing.
According to official sources, the increase in sugar prices is quite minor and of a brief duration.