Why Does India Need to Import Sugar

August 24, 2026

India’s abundant agricultural land produces abundant sugarcane. The country’s sugar mills used to produce sugar and export it to other countries. This situation persisted until 2022. Our customers included European Union countries and the United States. However, during these festive seasons, sugar shortages have worsened in the market, and sugar prices are skyrocketing. Sugar prices have risen from ₹7 to ₹16 in the past month. There were days when we exported sugar according to the prescribed quota, leaving enough sugar for the country so that it would be available to the people and not become unnecessarily expensive. But now it seems that if the sugar shortage continues and the sugar market continues to see a shortage, not only will its prices rise, creating another problem, but the upcoming festivals will also be overshadowed by the expensive sweets available to the countrymen.

Sugar is widely used in every household in the country. New data shows that sugar production for poor households has decreased by 20 percent. The government has attributed this to seasonal fluctuations and the El Niño effect. The government has also taken some steps, instructing sugar mills to maintain a 15-day stock instead of a month’s stock. However, one reason the government is still denying is the increase in the amount of ethanol added to petrol from 10 percent to 20 percent.

Ethanol is made from sugarcane, so the supply balance of sugar and wheat has been disrupted. Policy needs to be fully addressed because, in recent years, instead of sowing pulses and coarse grains, we have launched a campaign to sow more sugarcane as part of crop diversification. If the government’s claim that increasing the ethanol percentage in petrol from 10 to 20 percent has made no difference and that the situation will improve by October is correct, then what will happen to the ongoing campaign to sow more sugarcane? If this leads to excess sugar production next year, won’t it harm farmers by driving down sugar prices? The bottom line is that we must be even more vigilant when formulating agricultural policies. We must diversify crops and ensure that the growth in new crops is not affected by the increase in sowing, say agricultural experts.