🔆 India’s Sugar Industry — Recent Price Rise 📍 Why in News? 🟢 PIB released a backgrounder on India’s sugar industry and the recent rise in sugar prices. 🟢 India is the world’s 2nd-largest sugarcane producer, supporting nearly 5 crore farmers and around 5 lakh workers. 📍 Key Facts 🟢 Sugarcane production reached 500 MMT in 2025-26, up from 348.44 MMT in 2015-16. 🟢 India produces around 300–340 LMT sugar annually, while domestic consumption is around 280–290 LMT. 🟢 FRP for 2026-27: ₹365/quintal. 📍 Why have Sugar Prices Increased? 🟢 Price rose from ₹48.18/kg (20 July 2026) to ₹55.70/kg (20 August 2026) — around 15.6% rise. 🟢 Lower-than-expected production. 🟢 Red Rot & Top Borer diseases and waterlogging due to excess rainfall. 🟢 Festive-season demand. 🟢 Rising global sugar prices and tightening global supplies. 🟢 Speculation and hoarding. 📍 Ethanol–Sugar Link 🟢 Sugar diverted for ethanol declined from 12% in 2022-23 to around 9% in 2025-26. 🟢 Nearly three-fourths of India’s ethanol now comes from grains, particularly maize. 🟢 Hence, the recent sugar price rise cannot be attributed primarily to ethanol diversion. 📍 Government Measures 🟢 400-tonne stock limit on sugar dealers till 30 November 2026. 🟢 Bulk consumers restricted to 15 days’ consumption stock from September 2026. 🟢 Physical verification of sugar stocks to check hoarding. 🟢 10 LMT duty-free raw sugar imports permitted. 🟢 Crushing season advised to begin from 15 October 2026. 🎯 Mains Application: 🟢 India’s sugar policy must balance consumer price stability, farmer remuneration, mill viability and ethanol-based energy security. #Agriculture
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