Centre allows 2.5 lakh tonnes of refined sugar into domestic market

Petrol, diesel and LPG prices already weigh on household budgets, and rising vegetable prices have added to the strain. Now sugar, used daily in tea and sweets, has also become costlier, adding to consumers' troubles. Ahead of the festive season, the central government has taken a major decision to try to keep sugar prices under control.

To rein in rising sugar prices, the Centre has allowed sugar companies to release about 2.5 lakh tonnes of refined sugar into the domestic market. The main aim behind the move is to boost supply as demand rises during the festive season.

Renuka Sugars Managing Director and Chief Executive Officer Sushil Kumar shared this information. According to him, an offer has been made to sell about 2.5 lakh tonnes of ALS refined sugar in the domestic market.

India has two separate sugar refineries, including Renuka Sugars, that import raw sugar under the Advance Licensing Scheme (ALS) for export purposes. Last month, the government had directed these refiners to sell refined sugar produced under ALS within the domestic market itself.

These steps by the government are said to have brought some decline in sugar prices in the country. If the extra refined sugar now enters the market, it is expected to put further pressure on prices, offering relief to consumers.

This refined sugar is priced at around forty-three to forty-four rupees per kilogram. Notably, the cost of imported sugar can go up to around fifty rupees per kilogram, which means the refined sugar available domestically could prove cheaper by comparison.

The government has taken several steps earlier as well to keep sugar prices under control. These include approving duty-free import of 10 lakh tonnes of sugar, tightening stockholding limits for large users and dealers, and restricting sugar exports.

Refined sugar and factory-made mill sugar differ in processing and purity. Mill sugar is made by processing sugarcane juice and can retain some natural elements and impurities. Refined sugar, on the other hand, is made by re-melting mill sugar, filtering it and removing remaining impurities, which makes it purer and gives it a brighter white colour. Mill sugar typically has an ICUMSA grade of 150 to 400, while refined sugar has an ICUMSA level below 45.

Mill sugar is mostly used for household purposes, while refined sugar is used on a large scale by the bakery industry, cold drink manufacturers and the pharmaceutical sector. Demand for sweets, bakery items and various food products rises during the festive season, pushing up demand for sugar as well. In this context, an extra 2.5 lakh tonnes of refined sugar entering the market is expected to boost supply and help keep sugar prices under control.

How much this decision actually affects retail sugar prices, and how much relief consumers really get, will become clear in the days ahead.