// BBC WORLD NEWS — MONDO
India's sugar squeeze threatens its biggest season for sweets
India is the largest consumer of sugar in the world
India, the world's largest consumer of sugar, is trying to avoid a bittersweet festive season.
Sugar prices have jumped nearly 40% in the past two months, prompting the government to import 1 million tonnes for the first time in nearly a decade.
The move comes as demand surges from August, with festivals such as Ganesh Chaturthi, Dussehra and Diwali leading into the busy wedding season. Food and beverage companies also begin stocking up for one of their busiest sales periods, adding pressure on wholesale prices.
Production is now expected to be 30.6 million tonnes in the current season, which runs from October 2025 to September 2026 - 11% below the government's earlier estimate of 34.3 million tonnes.
The squeeze has sent prices soaring. A kilo of sugar that cost around 40-45 rupees ($0.42-0.47; £0.31-0.35) in May-June was selling for more than 58-60 rupees in several markets in August, although prices have begun to ease slightly.
But how did a country, which is also the world's second-largest sugar producer, end up needing imports?
The government has blamed lower sugarcane production linked to reduced rainfall during El Niño, hoarding and tighter global supplies after adverse weather hit other major producers.
But experts say another key factor was that India overestimated its own production - and allowed sugar to be exported before the extent of the shortfall became clear.
The government initially approved exports of 1.5 million tonnes this season, adding another 500,000 tonnes in February. Nearly 800,000 tonnes had been shipped before exports were halted in May.