NEW DELHI, Aug 23: Some sugar consignments are likely to reach Indian ports before October 15, while government measures to curb hoarding and speculative trading have started bringing down domestic prices, National Federation of Cooperative Sugar Factories (NFCSF) president Prakash Naiknavare said on Sunday.
Naiknavare said Brazil is currently the most feasible source for sugar imports, as Thailand is facing a supply shortage. Shipments from Brazil typically take 40-45 days to reach India, followed by additional time for transportation from ports to sugar mills.
He said it was difficult to estimate how much sugar would arrive before October 15, as the process involves regulatory approvals, allocation, letters of credit, shipment schedules and possible port congestion.
The government had recently allowed duty-free imports of up to one million tonnes of raw sugar to increase domestic availability and check rising prices.
Naiknavare said port-based states such as Maharashtra, Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh were likely to receive imported sugar first, though supplies could subsequently move to northern states by road and rail.
He ruled out any immediate supply crisis, saying the federation estimates 2025-26 sugar production at 279 lakh tonnes, excluding around 24 lakh tonnes diverted for ethanol production.
The opening stock for the 2026-27 season is estimated at 35 lakh tonnes, against monthly domestic demand of around 22 lakh tonnes. Early crushing is expected to add fresh supplies from November.
"I don't think there is going to be any panic situation," Naiknavare said.
He said ex-mill sugar prices, which had risen to Rs 65-67 per kg excluding GST, declined by around Rs 5 per kg in tenders opened on Saturday following government action against hoarding and speculative pricing.
The measures include physical verification of stocks, a 200-tonne limit for traders, restrictions on bulk buyers and inspections of warehouses belonging to traders and sugar mills.
Naiknavare said flying squads deployed across states were expected to further improve market conditions in the coming week.
India had permitted sugar exports of 20 lakh tonnes but shipped only around eight lakh tonnes due to unfavourable international prices. The government subsequently banned sugar exports until September 30 to strengthen domestic availability.
He also said global raw sugar prices had softened after India's import announcement, with comfortable international supplies expected to limit the impact of India's imports on global prices.
