
Why is India importing sugar duty-free after nearly a decade? Festival demand or ethanol?
India is allowing 1 million tonnes of raw sugar to be imported duty-free, apparently for the first time in nearly a decade.
What caught my attention is the timing. Sugar prices have risen sharply, and the import window runs until October 31 — right around the major festive season.
So I'm wondering:
Is this mainly because festival demand is expected to push consumption higher, or has sugarcane diversion towards ethanol also contributed significantly to the current shortage?
Would be interested to hear from people who understand the sugar/ethanol industry better. What do you think is the bigger reason?