In Brief
- Centre links sugar price rise to low production and festive demand.
- Government aims to stop hoarding amid sugar price surge.
- Allows sugar imports for the first time in nearly 10 years.
- Measures seek to stabilise sugar supply and prices domestically.
The Centre has attributed the recent increase in sugar prices to lower domestic output and heightened demand during the festive season, dismissing claims that the ethanol blending policy is responsible. According to officials, these factors have primarily driven the surge in prices rather than ethanol production requirements.
In response to rising sugar costs, the government has intensified actions against hoarding to ensure steady supply and prevent artificial price inflation. Authorities have also approved sugar imports, marking the first such move in nearly a decade, to supplement domestic availability and ease market pressure.
These measures aim to stabilise sugar prices for consumers and maintain supply chain equilibrium ahead of ongoing demand. The decision reflects the government's focus on managing seasonal market dynamics and addressing concerns about inflation and shortages.
