A political debate is raging in India about the rise in sugar prices, which the government is attributing to festive demand and lower sugarcane yields, even as sugar-linked stocks hit 52-week highs on Monday (Aug 24). Opposition parties such as the Congress and the Aam Aadmi Party (AAP) have blamed the rise in sugar prices on the use of sugarcane-derived products to produce ethanol for blending in petrol. The E20 petrol programme, under which 20 per cent ethanol is blended with 80 per cent petrol, was a planned policy rollout rather than a direct consequence of fuel import disruptions. However, India's energy security concerns were complicated by the Iran-US war, the Russia-Ukraine war and disruptions to energy transhipments through the Strait of Hormuz. The situation is increasingly looking unsustainable, with the government stepping in to allow duty-free imports of sugar to address concerns over tight supplies.<h2>Is the diversion of sugar for ethanol blending in petrol the real cause of sugar price hikes?</h2>India does use sugar and sugarcane byproducts for its ethanol blending programme. Sugarcane-based feedstocks for ethanol include direct cane juice, syrup, and B-heavy and C-heavy molasses.But recent reports say that other sources such as maize and surplus rice from the Food Corporation of India (FCI), as well as damaged foodgrains, account for the larger share of ethanol production. Around 32 per cent of the ethanol supplied to oil marketing companies for blending with petrol comes from sugarcane-based feedstocks, while the grain-based share is larger, at roughly 68 per cent.<a href="https://www.wionews.com/videos/e10-or-e20-should-consumers-get-a-choice-1786974307957/embed">https://www.wionews.com/videos/e10-or-e20-should-consumers-get-a-choice-1786974307957/embed</a><h2>Govt pushes back on claims linking ethanol blending with sugar price rise</h2>India's Ministry of Consumer Affairs has repeatedly said it is incorrect to attribute the recent increase in sugar prices to the diversion of sugar for ethanol production. The share of sugar diverted for ethanol fell from 12 per cent in 2022-23 to 9 per cent in 2025-26, per the government. Nearly three-fourths of India's ethanol production now comes from grains, particularly maize.The government insisted that lower-than-expected domestic production of sugar is to blame for the rising prices. Sugar production during the current season is expected to be around 30.6 million tonnes, against an initial estimate of around 34.3 million. Production was affected by Red Rot and Top Borer diseases in sugarcane, as well as waterlogging caused by excessive rainfall. Festive-season demand, tighter global supplies and speculation and hoarding are adding to the pressure.International sugar prices have also risen by more than 16 per cent in recent months, adding to the pressure on domestic prices. The West Indian Sugar Mills Association (WISMA) and other industry representatives have said declining sugarcane output and stockpiling are contributing to the current crisis, rather than ethanol blending alone.'Also read: <a href="https://www.wionews.com/world/e20-petrol-row-puri-says-only-four-contaminated-samples-found-rahul-gandhi-steps-up-attack-1786122960349">E20 petrol row: Puri says only four contaminated samples found, Rahul Gandhi steps up attack</a><h2>Nothing new: Sugar prices have always been politicised</h2>With several politicians directly having stakes in the sugar industry, price fluctuations have always been a political issue. The AAP and Congress have seen an opportunity to accuse the government of diverting sugar towards ethanol for the E20 blending programme, arguing that this has reduced sugar availability and contributed to the spike.It should be noted that, in the past few years, millions of tonnes of sugar have been diverted towards ethanol in the food-versus-fuel trade-off, in which it can be more profitable to use the commodity in the energy industry.This season, around 3 million tonnes of sugar are estimated to have been diverted towards ethanol. But the brighter side for farmers and mills is that higher sugar prices can make sugar production more profitable. The government has also said that diverting surplus sugar towards ethanol has helped improve the financial health of sugar mills and facilitated timely payments to farmers. As of August 20, 97 per cent of sugarcane dues for the 2025-26 season had been paid.Also read: <a href="https://www.wionews.com/india-news/what-s-behind-rising-sugar-prices-in-india-government-breaks-silence-says-ethano-not-to-blamel-1787370008114">What's behind rising sugar prices in India? Government breaks silence, says 'ethanol...'</a><h2>The stock price spikes of sugar-linked firms</h2>Sugar stocks rallied sharply on Monday, with several companies hitting their 52-week highs. Shares of Bajaj Hindusthan Sugar, Avadh Sugar &amp; Energy, Dalmia Bharat Sugar and Industries, Dhampur Sugar Mills, Dwarikesh Sugar Industries, Magadh Sugar &amp; Energy, Mawana Sugars, Ponni Sugars, Ugar Sugar Works and Uttam Sugar Mills all hit their respective 52-week highs. Some stocks rose by as much as 12 per cent in intraday trade, reflecting investor optimism over the sector's near-term outlook amid rising sugar prices and tighter domestic supplies.The rally is supply-and-demand driven, particularly after the government tightened stockholding limits. Sugar mills may also shift their preference towards sugar production over ethanol as higher sugar prices improve returns.The government has assured consumers that there are enough sugar stocks to meet domestic demand, yet it has also allowed duty-free imports of 1 million tonnes of raw sugar until October 31. The move highlights concerns over tight supplies ahead of the festive season.The government has also taken measures such as imposing a 400-tonne stock limit on sugar dealers from August 1 to November 30, while bulk consumers will not be allowed to hold sugar stocks exceeding 15 days of consumption from September 1. These measures are aimed at preventing hoarding and artificial shortages.

India's sugar prices are rising amid festive demand and lower production. The political debate is continuing on whether the price rise has to do with  E20 ethanol blending in petrol. The government is pushing back

A political debate is raging in India about the rise in sugar prices, which the government is attributing to festive demand and lower sugarcane yields, even as sugar-linked stocks hit 52-week highs on Monday (Aug 24). Opposition parties such as the Congress and the Aam Aadmi Party (AAP) have blamed the rise in sugar prices on the use of sugarcane-derived products to produce ethanol for blending in petrol. The E20 petrol programme, under which 20 per cent ethanol is blended with 80 per cent petrol, was a planned policy rollout rather than a direct consequence of fuel import disruptions. However, India's energy security concerns were complicated by the Iran-US war, the Russia-Ukraine war and disruptions to energy transhipments through the Strait of Hormuz. The situation is increasingly looking unsustainable, with the government stepping in to allow duty-free imports of sugar to address concerns over tight supplies. Is the diversion of sugar for ethanol blending in petrol the real cause of sugar price hikes? India does use sugar and sugarcane byproducts for its ethanol blending programme. Sugarcane-based feedstocks for ethanol include direct cane juice, syrup, and B-heavy and C-heavy molasses. But recent reports say that other sources such as maize and surplus rice from the Food Corporation of India (FCI), as well as damaged foodgrains, account for the larger share of ethanol production. Around 32 per cent of the ethanol supplied to oil marketing companies for blending with petrol comes from sugarcane-based feedstocks, while the grain-based share is larger, at roughly 68 per cent. https://www.wionews.com/videos/e10-or-e20-should-consumers-get-a-choice-1786974307957/embed Govt pushes back on claims linking ethanol blending with sugar price rise India's Ministry of Consumer Affairs has repeatedly said it is incorrect to attribute the recent increase in sugar prices to the diversion of sugar for ethanol production. The share of sugar diverted for ethanol fell from 12 per cent in 2022-23 to 9 per cent in 2025-26, per the government. Nearly three-fourths of India's ethanol production now comes from grains, particularly maize. The government insisted that lower-than-expected domestic production of sugar is to blame for the rising prices. Sugar production during the current season is expected to be around 30.6 million tonnes, against an initial estimate of around 34.3 million. Production was affected by Red Rot and Top Borer diseases in sugarcane, as well as waterlogging caused by excessive rainfall. Festive-season demand, tighter global supplies and speculation and hoarding are adding to the pressure. International sugar prices have also risen by more than 16 per cent in recent months, adding to the pressure on domestic prices. The West Indian Sugar Mills Association (WISMA) and other industry representatives have said declining sugarcane output and stockpiling are contributing to the current crisis, rather than ethanol blending alone.' Also read: E20 petrol row: Puri says only four contaminated samples found, Rahul Gandhi steps up attack Nothing new: Sugar prices have always been politicised With several politicians directly having stakes in the sugar industry, price fluctuations have always been a political issue. The AAP and Congress have seen an opportunity to accuse the government of diverting sugar towards ethanol for the E20 blending programme, arguing that this has reduced sugar availability and contributed to the spike. It should be noted that, in the past few years, millions of tonnes of sugar have been diverted towards ethanol in the food-versus-fuel trade-off, in which it can be more profitable to use the commodity in the energy industry. This season, around 3 million tonnes of sugar are estimated to have been diverted towards ethanol. But the brighter side for farmers and mills is that higher sugar prices can make sugar production more profitable. The government has also said that diverting surplus sugar towards ethanol has helped improve the financial health of sugar mills and facilitated timely payments to farmers. As of August 20, 97 per cent of sugarcane dues for the 2025-26 season had been paid. Also read: What's behind rising sugar prices in India? Government breaks silence, says 'ethanol...' The stock price spikes of sugar-linked firms Sugar stocks rallied sharply on Monday, with several companies hitting their 52-week highs. Shares of Bajaj Hindusthan Sugar, Avadh Sugar & Energy, Dalmia Bharat Sugar and Industries, Dhampur Sugar Mills, Dwarikesh Sugar Industries, Magadh Sugar & Energy, Mawana Sugars, Ponni Sugars, Ugar Sugar Works and Uttam Sugar Mills all hit their respective 52-week highs. Some stocks rose by as much as 12 per cent in intraday trade, reflecting investor optimism over the sector's near-term outlook amid rising sugar prices and tighter domestic supplies. The rally is supply-and-demand driven, particularly after the government tightened stockholding limits. Sugar mills may also shift their preference towards sugar production over ethanol as higher sugar prices improve returns. The government has assured consumers that there are enough sugar stocks to meet domestic demand, yet it has also allowed duty-free imports of 1 million tonnes of raw sugar until October 31. The move highlights concerns over tight supplies ahead of the festive season. The government has also taken measures such as imposing a 400-tonne stock limit on sugar dealers from August 1 to November 30, while bulk consumers will not be allowed to hold sugar stocks exceeding 15 days of consumption from September 1. These measures are aimed at preventing hoarding and artificial shortages.

India's sugar prices are rising amid festive demand and lower production. The political debate is continuing on whether the price rise has to do with &nbsp;E20 ethanol blending in petrol. The government is pushing back

India's sugar-linked stocks soar to 52-week highs even as govt inisists rising prices, shortage not linked to ethanol blending for E20 petrol

Sugar prices are soaring across India, with domestic prices rising by nearly 40% in just two months. The sharp increase has prompted the government to take major emergency measures ahead of the festive season.

Retail sugar prices have reportedly climbed from around ₹48.18 per kilogram to ₹55.70 per kilogram, while wholesale and ex-mill prices have also increased across major producing regions.

The government has attributed the price surge to lower-than-expected sugar production, weather-related damage, rising festive demand, tighter global supplies and speculation or hoarding. Initial sugar production estimates of around 343 lakh tonnes have reportedly been revised down to approximately 306 lakh tonnes — a shortfall of about 37 lakh tonnes.

The Centre has also rejected claims that ethanol production is responsible for the current price spike, pointing out that the share of sugar diverted toward ethanol has declined compared with previous years.

Sugar Prices Hit Record Highs in India | Government Takes Emergency Measures as Prices Surge 40%

India has witnessed a dramatic increase in sugar prices over the past month. Amid uproar that the increasing cost during festival time was due to the Modi government's E20 (ethanol) push, the Centre has finally broken its silence. In a statement on Friday (Aug 21), the Ministry of Consumer Affairs, Food &amp; Public Distribution rejected the claim that the increase is mainly linked to the diversion of sugar for ethanol production.The Ministry said a combination of domestic and global factors was behind the recent rise, while stressing that sufficient stocks are available to meet demand until the next crushing season.Notably, retail sugar prices rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, according to the ministry.Now, the government has introduced measures to curb hoarding. Here's all you need to know.<h2>Why are sugar prices rising?</h2>The government attributed the increase to several factors, including lower-than-expected domestic sugar production, stronger demand ahead of the festive season, weather-related crop damage, tighter global supplies and speculation or hoarding by some sections of the industry.India's sugar production for the current season is now estimated at 306 lakh metric tonnes (LMT), down from an initial projection of 343 LMT. The ministry attributed the shortfall to crop problems, including Red Rot, Top Borer disease, and waterlogging caused by excessive rainfall.<h2>Is ethanol really behind the price rise?</h2>The government says no. "It is incorrect to attribute the recent increase in sugar prices to the diversion of sugar for ethanol production," the ministry said.It pointed out that the share of sugar diverted towards ethanol production has actually declined, from around 12 per cent in 2022-23 to around 9 per cent in 2025-26.At the same time, nearly three-fourths of India's ethanol production now comes from grains, particularly maize, it said.The ministry also argued that the ethanol policy has improved the financial position of sugar mills, helping them clear payments to farmers. By August 20, mills had cleared 97 per cent of cane dues for the 2025-26 season, according to the government.<h2>Global sugar shortage adds pressure</h2>India's domestic market is also being affected by international trends. The government estimates a 33 LMT global sugar deficit for 2026-27, with adverse weather affecting production in major markets.Global sugar prices rose from $474 per tonne on June 30 to $552 per tonne on August 20, an increase of more than 16 per cent in less than two months.<h2>What is the government doing?</h2>The Centre has introduced several measures to prevent further price escalation and ensure supplies during the festive season.A 400-tonne stock limit for dealers will remain in place until November 30, while bulk consumers will face a 15-day holding limit from September 1. Central and state teams are also conducting physical stock checks at sugar mills to detect hoarding and artificial scarcity.The government has additionally allowed duty-free imports of 10 LMT of raw sugar. Sugar mills have also been advised to begin crushing earlier, from October 15. The ministry expects this could push October production above 10 LMT, compared with the usual 3-4 LMT.The Centre said it would continue monitoring sugar stocks and market practices while balancing the interests of consumers and sugarcane farmers.

Sugar prices have jumped sharply ahead of the festive season, triggering a political row over ethanol. Now the Centre has rejected the E20 link and pointed to a mix of domestic crop losses, global shortages and possible hoarding.

India has witnessed a dramatic increase in sugar prices over the past month. Amid uproar that the increasing cost during festival time was due to the Modi government's E20 (ethanol) push, the Centre has finally broken its silence. In a statement on Friday (Aug 21), the Ministry of Consumer Affairs, Food & Public Distribution rejected the claim that the increase is mainly linked to the diversion of sugar for ethanol production. The Ministry said a combination of domestic and global factors was behind the recent rise, while stressing that sufficient stocks are available to meet demand until the next crushing season. Notably, retail sugar prices rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, according to the ministry. Now, the government has introduced measures to curb hoarding. Here's all you need to know. Why are sugar prices rising? The government attributed the increase to several factors, including lower-than-expected domestic sugar production, stronger demand ahead of the festive season, weather-related crop damage, tighter global supplies and speculation or hoarding by some sections of the industry. India's sugar production for the current season is now estimated at 306 lakh metric tonnes (LMT), down from an initial projection of 343 LMT. The ministry attributed the shortfall to crop problems, including Red Rot, Top Borer disease, and waterlogging caused by excessive rainfall. Is ethanol really behind the price rise? The government says no. "It is incorrect to attribute the recent increase in sugar prices to the diversion of sugar for ethanol production," the ministry said. It pointed out that the share of sugar diverted towards ethanol production has actually declined, from around 12 per cent in 2022-23 to around 9 per cent in 2025-26. At the same time, nearly three-fourths of India's ethanol production now comes from grains, particularly maize, it said. The ministry also argued that the ethanol policy has improved the financial position of sugar mills, helping them clear payments to farmers. By August 20, mills had cleared 97 per cent of cane dues for the 2025-26 season, according to the government. Global sugar shortage adds pressure India's domestic market is also being affected by international trends. The government estimates a 33 LMT global sugar deficit for 2026-27, with adverse weather affecting production in major markets. Global sugar prices rose from $474 per tonne on June 30 to $552 per tonne on August 20, an increase of more than 16 per cent in less than two months. What is the government doing? The Centre has introduced several measures to prevent further price escalation and ensure supplies during the festive season. A 400-tonne stock limit for dealers will remain in place until November 30, while bulk consumers will face a 15-day holding limit from September 1. Central and state teams are also conducting physical stock checks at sugar mills to detect hoarding and artificial scarcity. The government has additionally allowed duty-free imports of 10 LMT of raw sugar. Sugar mills have also been advised to begin crushing earlier, from October 15. The ministry expects this could push October production above 10 LMT, compared with the usual 3-4 LMT. The Centre said it would continue monitoring sugar stocks and market practices while balancing the interests of consumers and sugarcane farmers.

Sugar prices have jumped sharply ahead of the festive season, triggering a political row over ethanol. Now the Centre has rejected the E20 link and pointed to a mix of domestic crop losses, global shortages and possible hoarding.

What's behind rising sugar prices in India? Government breaks silence, says 'ethanol...'

In a bid to secure ample supplies of sugar amid concerns of a potential fall in production due to below-normal rainfall in key growing states, India is contemplating measures to discourage the diversion of sugar for ethanol production, according to government and trade sources cited by Reuters.&nbsp;

The move aims to boost sugar output and may involve urging mills not to use sugar cane juice and B-heavy molasses (contains less sugar and does not spontaneously crystallise) for ethanol production. The decision comes as a response to the demand-supply situation, with the government intending to prioritise sugar production in the current marketing year, which commenced on November 1. The potential shift is seen as a setback for an industry that has made significant investments in increasing ethanol production capacity over the last five years.&nbsp;

Government sources, speaking on condition of anonymity, indicated that the authorities could specifically allow mills to produce ethanol only from C-heavy molasses, a cane by-product with minimal sugar content. &nbsp;

This decision aligns with the government's focus on addressing the challenges posed by patchy rains in Maharashtra and Karnataka, key sugar cane-growing states, raising concerns about the potential decline in sugar output for the 2023-24 marketing year. The Indian Sugar Mills Association has already projected an 8 per cent drop in sugar production, estimating it at 33.7 million metric tons. &nbsp;

Ethanol procurement guidelines for the ongoing marketing year are expected to be finalised soon, with oil marketing companies likely to honour contracts already awarded. The government's decision to prioritise sugar production is seen as a short-term setback by industry insiders, who hope for a shift in focus back to ethanol once sugar cane supplies improve.&nbsp;

India's fuel retailers, who blend ethanol with gasoline, have been paying higher prices for ethanol produced from sugar cane juice and B-heavy molasses. The potential restriction on using these sources for ethanol production could impact the economics of the industry.&nbsp;

Local sugar prices have already surged to their highest levels in nearly 14 years.&nbsp;

(With inputs from Reuters)&nbsp;

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In a bid to secure ample supplies of sugar amid concerns of a potential fall in production due to below-normal rainfall in key growing states, India is contemplating measures to discourage the diversion of sugar for ethanol production, according to government and trade sources cited by Reuters.

In a bid to secure ample supplies of sugar amid concerns of a potential fall in production due to below-normal rainfall in key growing states, India is contemplating measures to discourage the diversion of sugar for ethanol production, according to government and trade sources cited by Reuters. The move aims to boost sugar output and may involve urging mills not to use sugar cane juice and B-heavy molasses (contains less sugar and does not spontaneously crystallise) for ethanol production. The decision comes as a response to the demand-supply situation, with the government intending to prioritise sugar production in the current marketing year, which commenced on November 1. The potential shift is seen as a setback for an industry that has made significant investments in increasing ethanol production capacity over the last five years. Government sources, speaking on condition of anonymity, indicated that the authorities could specifically allow mills to produce ethanol only from C-heavy molasses, a cane by-product with minimal sugar content. This decision aligns with the government's focus on addressing the challenges posed by patchy rains in Maharashtra and Karnataka, key sugar cane-growing states, raising concerns about the potential decline in sugar output for the 2023-24 marketing year. The Indian Sugar Mills Association has already projected an 8 per cent drop in sugar production, estimating it at 33.7 million metric tons. Ethanol procurement guidelines for the ongoing marketing year are expected to be finalised soon, with oil marketing companies likely to honour contracts already awarded. The government's decision to prioritise sugar production is seen as a short-term setback by industry insiders, who hope for a shift in focus back to ethanol once sugar cane supplies improve. India's fuel retailers, who blend ethanol with gasoline, have been paying higher prices for ethanol produced from sugar cane juice and B-heavy molasses. The potential restriction on using these sources for ethanol production could impact the economics of the industry. Local sugar prices have already surged to their highest levels in nearly 14 years. (With inputs from Reuters) WATCH WION LIVE HERE

India shifts focus from ethanol to sugar production amid supply concerns 

The Indian government on Wednesday decided to extend the stock limit on sugar traders by another six months, up to October.&nbsp;The Cabinet Committee on Economic Affairs or CCEA approved the proposal as a measure to boost the availability of sugar in the open market and to prevent black-marketeers from cranking up prices by creating a false shortage.&nbsp;

Prime Minister Narendra Modi chaired the cabinet meeting in which the proposal was cleared.&nbsp;

&quot;The Union cabinet has given its approval for extending the validity of the existing Central Order in respect of sugar for a further period of six months from April 29 to October 28, 2017,&quot; an official statement said.&nbsp;

This move will enable state governments to impose stock limits and licensing requirements in respect of sugar if needed, it said.&nbsp;

The government feels that &quot;despite adequate availability of stocks for consumption in the current season, hoarding and consequent profiteering is anticipated due to drop in production over the previous year&quot;.&nbsp;

The sugar price rise appeared to be based more on sentiment than actual shortage, the government said. Fixing a stock limit is essential for regulating sugar supply and control of speculative prices.&nbsp;

Sugar is available for Rs 42-Rs 44 a kg, on an average, in most retail markets in India. However, prices are expected to be under pressure due to domestic fall, given the reported dip in production in top sugarcane growing states like Karnataka and Maharashtra.

According to reports in the Indian media, production is down by a whopping 60 lakh tonne in Karnataka and Maharashtra that are among the top three sugarcane producing states. Sugarcane cultivation is irrigation intensive and is easily hit in the absence of abundant water supply.&nbsp;Both these states have been reeling from drought for the past two years.

The other major sugarcane producer, the north Indian state of Uttar Pradesh, had improved production this year, but the recovery accounts for only 16 lakh tonnes. The Bharatiya Janata Party-led Uttar Pradesh state government is trying to push sugar mill owners to pay the Rs 4,000-crore arrears it owes to farmers in a bid to ease farming distress.

The Indian sugar industry, however, has been allaying fears of a shortage. Indian Sugar Mills Association (ISMA) director general Abinash&nbsp;Varma&nbsp;was quoted in news reports as saying that India will tide over the production gap with a mix of &#39;domestic stocks and imports&#39;. ISMA represents non-cooperative private and public sugar mills in India. India yields an average of 250 lakh tonnes of sugar every year and is its second largest producer in the world after Brazil.

Currently, there is a stock limit of 500 tonnes and turnover limit of 30 days for sugar traders in the country with the exception of the eastern state of West Bengal. The stock limit for traders in West Bengal is 1,000 tonnes.&nbsp;

The country&#39;s sugar output is estimated to fall for the second consecutive year to about 20 million tonnes in 2016-17 season (October-September), much lower than the annual demand of 24-25 metric tonnes.&nbsp;

To boost domestic supply, the government has allowed duty-free import of 5,00,000 tonnes of raw sugar till June.

(WION with agency inputs) 
&nbsp;

Sugar production is down by 60 lakh tonnes due to drought in Karnataka, Maharashtra. Imports, domestic stocks are expected to plug the gap

The Indian government on Wednesday decided to extend the stock limit on sugar traders by another six months, up to October. The Cabinet Committee on Economic Affairs or CCEA approved the proposal as a measure to boost the availability of sugar in the open market and to prevent black-marketeers from cranking up prices by creating a false shortage. Prime Minister Narendra Modi chaired the cabinet meeting in which the proposal was cleared. "The Union cabinet has given its approval for extending the validity of the existing Central Order in respect of sugar for a further period of six months from April 29 to October 28, 2017," an official statement said. This move will enable state governments to impose stock limits and licensing requirements in respect of sugar if needed, it said. The government feels that "despite adequate availability of stocks for consumption in the current season, hoarding and consequent profiteering is anticipated due to drop in production over the previous year". The sugar price rise appeared to be based more on sentiment than actual shortage, the government said. Fixing a stock limit is essential for regulating sugar supply and control of speculative prices. Sugar is available for Rs 42-Rs 44 a kg, on an average, in most retail markets in India. However, prices are expected to be under pressure due to domestic fall, given the reported dip in production in top sugarcane growing states like Karnataka and Maharashtra. According to reports in the Indian media, production is down by a whopping 60 lakh tonne in Karnataka and Maharashtra that are among the top three sugarcane producing states. Sugarcane cultivation is irrigation intensive and is easily hit in the absence of abundant water supply. Both these states have been reeling from drought for the past two years. The other major sugarcane producer, the north Indian state of Uttar Pradesh, had improved production this year, but the recovery accounts for only 16 lakh tonnes. The Bharatiya Janata Party-led Uttar Pradesh state government is trying to push sugar mill owners to pay the Rs 4,000-crore arrears it owes to farmers in a bid to ease farming distress. The Indian sugar industry, however, has been allaying fears of a shortage. Indian Sugar Mills Association (ISMA) director general Abinash Varma was quoted in news reports as saying that India will tide over the production gap with a mix of 'domestic stocks and imports'. ISMA represents non-cooperative private and public sugar mills in India. India yields an average of 250 lakh tonnes of sugar every year and is its second largest producer in the world after Brazil. Currently, there is a stock limit of 500 tonnes and turnover limit of 30 days for sugar traders in the country with the exception of the eastern state of West Bengal. The stock limit for traders in West Bengal is 1,000 tonnes. The country's sugar output is estimated to fall for the second consecutive year to about 20 million tonnes in 2016-17 season (October-September), much lower than the annual demand of 24-25 metric tonnes. To boost domestic supply, the government has allowed duty-free import of 5,00,000 tonnes of raw sugar till June. (WION with agency inputs)

2nd largest sugar producer India imposes stock limit to control price rise, prevent black-marketing