Various government initiatives guarantee the availability of sugar over the festive season.

India has requested information on all sales between May and August 2023 from sugar traders and recognised dealers affiliated with mills by Tuesday, September 12.

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The step took  in an effort to guarantee enough availability of sugar at affordable prices throughout the holiday season.

To ensure adequate availability at fair pricing, the government has requested comprehensive data on the existing sugar stockpiles. This would include a collection of information on sugar stocks sold to sugar dealers and wholesalers other than sugar mills.

Clause 5 of the Sugar (Control) Order 1966 Imposed

The Ministry of Consumer Affairs, Food, and Public Distribution has addressed its letter as "top most priority" and used Clause 5 of the Sugar (Control) Order 1966 to request detailed information on sugar supplies from merchants, dealers, major retail chains, wholesalers, and processors.

In the letter, which is addressed to industry associations as well, it is requested that they advise and work with sugar mills to provide information. The National Federation of Cooperative Sugar Factories (NFCSF), the All India Sugar Traders Association (AISTA), and the Indian Sugar Mills Association (ISMA) are among the trade organisations.

The demand for sugar is expected to go beyond edible consumption as a result of the G20 summit's announcement of the Global Biofuel Alliance and government efforts to increase ethanol fuel blending.

India as the world's second largest producer of the sugar

This comes after reports last week claimed that Switzerland-based trader Avlean anticipates a scarcity of sugar supplies this year due to anticipated reduced production in India, the world's second-largest producer of the sugar after Brazil.

Production of sugarcane was reduced due to insufficient rainfall

The driest August in a century, when India faced a 36 percent rain shortfall, raised concerns that this year's Kharif crop output, notably sugarcane, might suffer. This year, the rain deficit in Maharashtra and Karnataka, two important sugarcane-growing regions, was over 50% below average.

Expectations that India would for the first time in seven years ban sugar exports were also sparked by the anticipated decreased output. Fears of a shortage and decreased production caused sugar prices to soar on international markets.