Govt asks sugar mills to ensure adequate supplies during festivals, keep prices 'reasonable'

India has asked sugar mills to ensure adequate supplies during the festival season and sell the sweetener at reasonable prices, while warning it will take corrective measures to keep prices stable, a food ministry official said on Thursday.

Sugar prices in the world's biggest ‌consumer of ⁠the ⁠sweetener rose to a record high last month on concerns over supplies, prompting New Delhi to allow duty-free imports of 1 million metric tons of sugar.

Sugar prices surged not because of a spurt in demand but because of hoarding in anticipation of further price increases during the ​festival season, said Ashwini Srivastava, a ⁠joint secretary in ‌the food ministry.


"It is the collective responsibility ​of the ​entire sector to ensure that prices remain stable. ⁠There is no justification for any price rise during ​festivals," he said.

India, which is typically a sugar ​exporter, is importing the sweetener from Brazil for the first time in nearly a decade. Sugar prices have eased in recent days after hitting a record high last month, but remain nearly 20% higher than two months ago.

Sugar demand typically rises ‌from August to November during major Indian festivals such as Ganesh Chaturthi, Dussehra and Diwali, when consumption ​of traditional sweets ​and confectionery increases.

The ⁠government will track sugar production on a monthly basis to improve policymaking aimed at keeping prices in check, Srivastava said.

"We have asked ​mills to provide accurate monthly production and sugar sale data," he said.

The government has so far received applications to import 800,000 metric tons of sugar under a duty-free quota of 1 million tons, he said.