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The Indian Sugar and Bio-Energy Manufacturers Association (Isma), the apex body of private sugar millers, on Monday asserted that there is no shortage of sugar in the country and retail prices are expected to come down over the next 7-10 days following steps taken by the government in the past few days.
Prices have risen due to various factors, including speculative buying by traders and bulk consumers, as well as lower production caused by adverse weather conditions, Isma President Niraj Shirgaokar said at a press conference.
He said sugar production would be sharply augmented in October, with 1 million tonne (mt) of sugar expected to be produced, against the normal 0.4-0.5 mt, once mills begin crushing early under the government’s direction.
The Isma president also categorically said mills were not involved in creating an artificial scarcity or pushing up ex-mill prices.
“India’s sugar balance remains fundamentally comfortable, with net sugar production for 2025-26 estimated at around 27.9 mt against domestic consumption of around 28-28.5 mt, and projected closing stocks of around 3.5 mt,” Shirgaokar said.
With the sugarcane crushing season expected to be advanced by 10-15 days to mid-October from early November, along with special crushing operations currently underway in Tamil Nadu and Karnataka, Isma expects October sugar production to rise to 1 million tonnes from the usual 0.4 mt.
“This additional domestic production, together with existing stocks and calibrated releases, should help ease the current pressure as festive buying normalises,” Isma Vice-President Madhav B Shriram said. He added that prices had started to ease following the government’s decision to allow duty-free imports of 1 mt of raw sugar and would weaken further over the next 7-10 days. Demand in October is expected to be 2.4-2.5 mt, he added.
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