India's sugar stockpile to shrink as output estimate falls

India's sugar production estimate has fallen to around 306 lakh tonnes, about 11% below the initial forecast, sharply reducing opening stocks for the new season. The government announced this on Friday, citing lower domestic output as a key factor. The reduced output will bring opening stocks on October 1 down to 33-34 lakh tonnes, from 50 lakh tonnes a year earlier. Officials say carry-over inventory remains adequate for domestic demand until fresh supplies arrive. Retail sugar prices have surged 20% in a month to ₹58.2 per kg. The government allowed duty-free imports of 10 lakh tonnes of raw sugar amid availability concerns. It rejected claims that ethanol diversion worsened supplies, noting its share has declined. Price increases were attributed to festive demand, weather damage, and tighter global supplies.