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Sugaronline South Asia Sugar & Ethanol Report, Sugaronline Regional Reports

Sugaronline South Asia Sugar & Ethanol Report – 18th August 2026

By Ritesh Kumar Singh

18th August 2026

A surge in sugar prices due to tight supplies amid strong festive demand is likely to prompt New Delhi to impose curbs on the use of cane-based feedstocks for ethanol production. It may even allow sugar mills to import up to one million tonnes of sugar, to boost domestic supplies and rein in prices.

Lower-than-expected sugar output and strong festive demand have pushed domestic sugar prices sharply higher. Wholesale prices in Kolhapur, a key sugar market, have risen nearly 20% in August to a record ₹5,350 a quintal. The surge is worrying the government, particularly when food inflation has already shot up to 5.52% (YoY) in July. The pressure

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