The Economic Times

Raw sugar futures have reached their highest level since March 2025. Strong Indian import demand and Brazilian supply disruptions are driving these gains. India has opened a tax-free import quota to meet domestic needs. The government warns mills against unjustified price increases during festivals. El Nio and oil prices also influence the global sugar market.

Agriculture sector NPAs have significantly decreased to single digits, according to Nabard Chairman Shaji Krishnan V. Boosting crop productivity and enhancing credit facilities will drive further improvements, he said.

Indian sugar mills are asked to ensure adequate supplies for the upcoming festival season. Domestic mills are seeking to import nearly 800,000 tons of duty-free raw sugar. The government directed mills to sell sugar at reasonable prices. Officials will continue monitoring prices and take corrective measures. This aims to keep sugar rates stable for consumers.

The upcoming PM KUSUM phase will feature a dedicated agrivoltaics component for farmers. This initiative will allow farmers to earn income from generated electricity. The focus will be on small farmers, cooperatives, and panchayats. Agrivoltaics combines farming and solar power generation on the same land. More research is needed to optimize crop and solar configurations.

Renewed weakening of rainfall in August and expectations of a deficient September could pose risks to Indias upcoming rabi season, Crisil said. It flagged cotton, bajra, maize, tur, groundnut and soybean as particularly vulnerable. Rainfall deficiency has widened to 14%, while September rainfall is forecast below normal.

Demand for jobs under the new rural employment scheme increased in August. Work sought by households rose significantly from the previous month. Millions of people sought employment opportunities across various Indian states. The new law provides more guaranteed employment days annually. It also sets a minimum daily wage for all workers.

Rising sugar prices are pushing packaged food companies towards another round of price hikes or smaller pack sizes. Bikaji Foods is rolling out a 2% price increase across its sweets portfolio, while analysts at Anand Rathi expect 2-5% hikes or shrinkflation in packaged foods as sugar, tea and coffee prices rise.

As officials and ministers from India and the 11 ASEAN member states gather in New Delhi for a two-day meeting, the substance of this partnership lies less in the communiqu than in the research, training and field-level programmes it has steadily built since 1992

India is considering liberalizing foreign direct investment norms for plantations. More commercial crops like bananas could be included under this policy. The government aims to boost exports of bananas significantly in coming years. This move seeks to enhance India's global market share in banana production. Stakeholder consultations are currently underway for this proposed policy change.

The Punjab Cabinet approved key policies for paddy procurement and movement in 2026-27. Amendments to Punjab Public Service Commission regulations were also sanctioned by the council. Thirty-three hospital posts were revived, and 138 new healthcare positions were created. Eighty vacant Medical Officer (Dental) posts will be filled by the department. These decisions aim to enhance public services and farmer support across the state.

Severe drought conditions in Nilgiris have drastically reduced green tea leaf supply. Tea factories are experiencing significant revenue losses and production declines. Small farmers face immense hardship due to crop failure and inadequate prices. Rainfall deficits have caused a substantial drop in tea productivity across the region. Government assistance is urgently needed for affected tea growers and workers.

India is using AI, satellite and drone technology to modernise tea plantation monitoring. The Tea Board, ISROs National Remote Sensing Centre and NIT Rourkela have launched CHAAYANKAN, a project that will use satellite imagery, weather data and field observations to detect crop stress, pests and diseases, and forecast tea yields.

Leaving farmers 'Bhagwan Bharose': The cost of MSP to ethanol gaps

Indian refiners sharply increased edible oil imports in August to build stocks ahead of the festive season. Palm oil imports rose 7% to 780,000 tonnes, while soyoil imports jumped 21% to a record 601,000 tonnes.

The government has reduced the sugar dealer stock limit to two thousand quintals. This measure aims to ensure adequate availability and stable prices during the festive season. Hoarding and speculative trading will be further curbed by this new regulation. An exemption has been granted to Kolkata and its extended metropolitan areas. This reduction will facilitate orderly movement of sugar through the supply chain.

India has opened up applications for its remaining raw sugar import quota, allowing eligible millers and refiners to apply for this lucrative duty-free allocation. This follows the initial notice for a million tons, of which over seven hundred thousand have been accounted for. Interested parties have until October thirty-first to seize this opportunity.

Onion prices at Maharashtra's Lasalgaon market have rebounded after a recent fall. The average wholesale price reached 40 per kg, with retail prices remaining high. Farmers hope to recover losses after two years of subdued prices. Concerns about the kharif crop and stored onion quality are driving prices up. The government claims prices are cooling in other markets due to buffer stock sales.

Crop prices saw their largest monthly jump in over a decade. Wheat prices reached a three-year high as Black Sea shipments were impacted. Sugar and cocoa also increased substantially due to El Nio weather worries. These rising costs threaten everyday pantry staples like bread and dairy.

India's government is enhancing a digital platform for fertilizer tracking. This system will link farmer purchases to land records and monitor subsidies. New dashboards will provide officials with consolidated views of fertilizer movement. The platform aims to identify supply shortfalls and unusual trends earlier. Electronic processing of subsidy bills will begin by January 2026.

Himachal Pradesh apple growers face a difficult season with reduced production. Erratic weather severely impacted fruit setting, leading to lower yields this year. Premium apples fetch firm prices, but costs remain high for growers. Traders report weak demand and small fruit sizes affecting their margins. Pending government payments add to the financial strain on many farmers.

Sugarcane farmers in Maharashtra are demanding higher prices for the 2025-26 season. This agitation follows a significant increase in sugar prices over recent months. Farmer organizations believe sugar mills should share increased profits with growers. Several farmer associations have submitted their demands to the state sugar commissionerate. Growers across the state seek better payment for sugarcane sold to mills.

Under the fortnightly quota, sugar mills will be required to sell at least 40% of the allocation in the first week and the remaining quantity in the succeeding week. It was observed that in certain cases, sugar sold by mills at the beginning of the month was being dispatched or lifted by buyers only towards the end of the month, leading to artificial scarcity, the government said in a statement.

Onion prices will likely stay firm until November despite government sales. Inferior quality of stored onions and delayed fresh crop arrival are key factors. Global onion shortages are also supporting domestic price stability. The government's price control measures follow a significant wholesale price increase. The Kanda Express transports onions from Maharashtra to major cities.

The government is also using rail and road networks to move buffer onions from producing regions to major consumption centres.

The government has started selling onions from its buffer stock at Rs 35 per kg. This move aims to provide relief to consumers and control prices before the festive season. Adequate onion supplies are available to meet domestic demand during the upcoming months. The government is also transporting bulk consignments through dedicated railway rakes. Proactive market interventions will ensure sufficient availability and moderate price pressures.

India's summer onion buffer stock has suffered considerable setbacks due to unexpected rainfall, leading to roughly thirty percent of onions rotting or sprouting. This spoilage threatens to disrupt market supply and hike prices. To alleviate the situation, special trains are now delivering onions to key cities at subsidized costs. Additionally, delays in the kharif crop are likely to further heighten onion shortages in the upcoming months.

Major retailers are limiting sugar purchases to three kilograms per customer. Quick commerce platforms also restrict sugar sales to a few packs. This comes as sugar supplies tighten before the Raksha Bandhan festival. Government-approved raw sugar imports aim to ease the tight stock situation. Prices have risen significantly and are expected to continue increasing.

The government has rejected requests for more time to sell excess sugar stocks. Bulk sugar users must now liquidate any surplus by August 31. This action aims to suppress sugar prices and curb hoarding allegations. Some companies fear this move could increase market price volatility. Industry analysts expect additional sugar to enter the market after this deadline.

Retail sugar prices increased for a second day due to higher festive demand. Ex-mill rates have fallen significantly after the government allowed raw sugar imports. Wholesale sugar prices also saw a marginal increase on Wednesday. The government has imposed stock limits and banned exports to control prices. Sugar supply remains adequate with sufficient domestic production and opening stocks.

The Indian Tea Association seeks government aid for tea industry revival. Financial and regulatory reforms are proposed for Darjeeling and Dooars regions. The association requests support for production and modernization efforts. Measures aim to protect employment and rural livelihoods across North Bengal. Time-bound implementation of policies is crucial for sector sustainability.

Sugar prices rose by nearly Re 1 per kg to Rs 63.97 in the retail market on August 25, despite recent government steps to curb the surge. The average retail price has risen 31% in a month from Rs 48.81 per kg and is 38% higher than a year ago. Wholesale prices have also climbed to Rs 59.23 per kg from Rs 45.35 a month earlier.

Union Minister Pralhad Joshi said the Centre is taking measures to manage sugar availability and rising prices ahead of the festival season, including temporary imports of raw sugar. He attributed the fall in production to red rot disease and El Nino conditions.

India has ordered dealers to hold sugar inventories for only fifteen days. This new rule takes effect from September first until November thirtieth. The government aims to bolster sugar supplies and rein in soaring prices. Festival demand and patchy rains have contributed to the current price surge. These measures are intended to stabilize the market through the busy festival season.

India's kharif planting has rebounded impressively following beneficial rainfall in July. Farmers are keen to recover from the setbacks of a parched June, showcasing an optimistic shift. The sowing of crucial crops like pulses and oilseeds is on track across the nation. Nevertheless, some crops still have acreage that is less than last year's. This revitalization raises expectations for alleviating food price concerns, provided the good rains continue.

Indian crop insurers are asking the government for regulatory data protection. This provision would encourage the introduction of newer, safer pesticide molecules. Companies seek a five-year exclusive access window for newly registered products. This change aims to boost farm output and agrochemical exports competitiveness. International comparisons show other nations offer similar data protection periods.

The Bharat International Rice Conference 2026 will showcase 200 rice varieties and 50 global cuisines. This event will be held in New Delhi from October 23 to 25. Nine experience zones will highlight rice through culture, technology, and nutrition. The conference will trace rice cultivation, consumption, and trade across generations. It will also examine rice's role in shaping global trade networks.

India faces rising fertilizer costs, prompting a review of its subsidy system. Global supply chain issues and war have doubled procurement expenses for the nation. Farmers are urged to reduce excessive chemical fertilizer use for soil health. A new distribution system is being tested to manage nutrient sales. This situation risks impacting food inflation both domestically and abroad.

Most sugar mills will not advance their crushing season by fifteen days. A significant shortage of migrant labor remains the primary obstacle for mills. This labor is typically available only around Diwali in November each year. Mechanized harvesting cannot adequately compensate for the missing workforce. Industry bodies had promised the government an earlier start to crushing operations.

Wholesale onion prices have surged significantly in the past week. The government plans to sell buffer stock onions to control rising prices. A delayed kharif crop from southern India is expected to further increase costs. Onion quality has suffered globally due to erratic weather conditions. Future price trends will depend on September rainfall and new crop arrivals.

Fresh coriander prices have significantly increased due to heavy rains. Supplies from key producing regions like Nashik were disrupted by flooding. Wholesale prices reached 175 per kg, while retail prices climbed higher. Limited arrivals from Karnataka offered some relief but with lower quality. Transport disruptions further contributed to the sharp price movements this week.

The Multi Commodity Exchange of India has launched crude sunflower oil futures contracts. This move aims to provide risk management options for India's edible oil sector. The new contract will help participants hedge against price volatility and improve efficiency. India relies heavily on imports for its edible oil requirements. MCX seeks to deepen the edible oil ecosystem and enhance price risk management tools.

Indian rice exporters face significant logistical challenges at Kandla port. Cargo clearance now extends to forty days, impacting perishable rice shipments. This congestion occurs while India holds substantial rice stocks and anticipates global demand. Container shortages further exacerbate issues for basmati and non-basmati rice exports. These disruptions are causing global non-basmati rice prices to increase.

Union Agriculture Minister Shivraj Singh Chouhan launched a new scholarship initiative. Over six thousand agriculture students will receive monthly direct bank transfers. This National Scholarship Portal-Direct Benefit Transfer system aims for faster payments. The government seeks to ensure timely financial assistance for students' education. This move strengthens agricultural education and practical learning opportunities.

India is set to ramp up rice utilization for ethanol production this year, amid reduced planting of maize and sugarcane, raising concerns about feedstock availability. Fortunately, the government maintains a healthy stock of rice, offering a safety net. With sugar prices soaring to unprecedented levels due to crop output fears, this strategy aligns with India's ambitious goal of achieving a 20% ethanol blending ratio.

By August 7, farmers have successfully planted Kharif crops at 87.7% of the expected seasonal average. While rainfall deficiencies have mitigated, the focus is now firmly on crop yields. The acreage for critical crops like rice and pulses trails behind last years figures. On a positive note, reservoir water levels have improved significantly following recent rainfall. Nevertheless, the IMD warns of below-normal rainfall for the upcoming monsoon weeks.

Inaugurating the programme, Nabin Kumar Roy, Chief General Manager, NABARD, highlighted the critical role of cooperative banks in financial inclusion and local economic development.

India may limit sugarcane use for ethanol to increase sugar production with an aim to stabilise record-high sugar prices and ensure smooth domestic supply. Reduced rainfall in key states has raised concerns about next year's sugar output. The government might allow corn and rice for ethanol to maintain its blending program.

Indian rice export prices remain near a ten-month high this week. Thai prices have reached a one-month peak, supported by buyer demand. Vietnam's rice exports are experiencing quiet trading activity due to weak demand. Bangladesh faces elevated rice prices after recent crop damage from flooding. Governments are developing climate-resilient rice varieties to address agricultural challenges.