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Sugar Prices Drop ₹5 as Brazil Shipment Arrives; Government Steps Up Measures to Control Rates

Posted on 24th Aug 2026 11:37 am by rohit kumar

Relief may be on the way for consumers as raw sugar consignments from Brazil could reach India before October 15. The development comes as the government steps up measures to control rising sugar prices and curb hoarding.

 

According to Prakash Naiknavare, President of the National Federation of Cooperative Sugar Factories, Brazil is currently the most viable source for India's sugar imports. Thailand, another traditional supplier, is reportedly dealing with its own domestic supply constraints.

 

Meanwhile, government measures appear to be having an impact. In open tenders held on Saturday, the ex-mill price of sugar declined by around ₹5 per kg.

 

Brazil Sugar Shipment Could Reach India Before October 15

 

Sugar shipments from Brazil typically take around 40 to 45 days to reach Indian ports. After arriving, raw sugar must be transported to mills for refining and processing.

 

As a result, it is difficult to determine exactly how much imported sugar will reach India by October 15. However, some consignments could arrive before that date, depending on shipping schedules, port conditions and other logistical factors.

 

Why Is Sugar Import Taking Time?

 

The import process involves several stages. Importers first need approval and an allocation from the Directorate General of Foreign Trade (DGFT). They then arrange payment through a Letter of Credit before securing the sugar and a shipping vessel.

 

Congestion at Brazilian ports could also affect departure and arrival schedules.

 

The final arrival date will therefore depend on multiple factors. Shipments already dispatched and in transit could potentially be considered even if they arrive slightly after the October 31 deadline.

 

Government Allows Duty-Free Import of 1 Million Tonnes

 

On August 20, the government permitted the duty-free import of up to 1 million tonnes of raw sugar under the Tariff Rate Quota mechanism.

 

The move came after domestic sugar prices rose sharply. According to the information available, prices increased from around ₹56 to ₹60 per kg, a rise of approximately 24% within a month.

 

Alongside imports, the government has also tightened measures aimed at preventing excessive stockholding and hoarding.

 

Which States Could Receive Imported Sugar First?

 

States with major ports are likely to receive imported sugar first. These include:

 

Maharashtra

Karnataka

Tamil Nadu

Gujarat

Andhra Pradesh

 

From these coastal states, sugar can be transported to other parts of the country through road and rail networks.

 

Northern states could also receive imported sugar through these distribution routes.

 

No Need to Panic Over Sugar Shortage

 

The National Federation of Cooperative Sugar Factories has maintained its estimate of India's net sugar production at 27.9 million tonnes for the 2025-26 sugar season.

 

The sugar season runs from October to September. The production estimate excludes around 2.4 million tonnes of sugar diverted towards ethanol production.

 

The federation expects around 3.5 million tonnes of sugar stocks to be available at the beginning of the 2026-27 sugar season on October 1.

 

India Consumes 2.2 Million Tonnes of Sugar Every Month

 

India consumes approximately 2.2 million tonnes of sugar each month.

 

The federation estimates that around 1.5 million to 2 million tonnes of sugar could remain available even by November. At the same time, fresh sugar production from the initial crushing operations is expected to begin entering the market.

 

Naiknavare said the availability situation does not warrant panic over a sugar shortage.

 

Will Sugar Become Cheaper?

 

The arrival of imported sugar could help improve domestic availability and ease supply pressure. The recent ₹5-per-kg decline in ex-mill prices is another indication that government measures may be beginning to influence the market.

 

However, the final price of imported sugar in India will depend on international sugar prices, shipping costs, port charges and domestic transportation expenses.

 

Since the government has allowed the imports without customs duty, the move could provide additional support to domestic supply.

 

Sugar Price Outlook: Key Points

Brazil is currently considered a key source for India's sugar imports.

Some raw sugar consignments could reach India before October 15.

Sugar shipments from Brazil take around 40-45 days.

The government has allowed duty-free imports of up to 1 million tonnes of raw sugar.

Ex-mill sugar prices have fallen by around ₹5 per kg in recent tenders.

India consumes approximately 2.2 million tonnes of sugar every month.

Fresh domestic sugar production is expected to begin entering the market from the new season.

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