1 hr ago
Sugar Industry Rejects Shortage Fears Ahead Of Festive Season
Some people are worried that India may not have enough sugar for the festive season.
Sugar industry groups say there is actually plenty of sugar available.
They say retail prices have already fallen to about ₹62 per kilogram.
Sugar mills plan to start making sugar 10 to 15 days earlier than usual.
This should add new sugar before demand becomes highest.
India also has sugar stocks and permission to import more sugar.
Industry groups expect refiners to add another 3 to 3.5 lakh tonnes by October 15.
They say these supplies should keep the market well stocked at reasonable prices.
Industry bodies say sugar availability is more than sufficient for festive demand.
Ex-mill prices rose from ₹39.5–40 per kg in June to ₹41–41.5 in August.
Retail prices have fallen to about ₹62 per kg, nearly 5% below their peak.
Mills will begin the 2026–27 crushing season 10–15 days earlier than usual.
Stocks, imports and planned refining are expected to preserve supply through October.
- Who
- The Indian Sugar & Bio-energy Manufacturers Association and the National Federation of Cooperative Sugar Factories said sugar supplies were sufficient.
- What
- The industry rejected fears of a sugar shortage and outlined stocks, imports and earlier crushing to support festive-season supplies.
- Where
- India, including special crushing operations in Tamil Nadu and Karnataka.
- When
- The statement covered price trends through August, September allocations and supplies expected by October 15; the 2026–27 crushing season will start earlier.
- Why
- The associations said existing stocks, early crushing, imports and refinery supplies would meet demand and prevent a festive-season shortage.
Shortage Concerns
Industry Assessment
Festive-season availability
Shortage Concerns
Shortage fears have been raised about whether supply will keep pace with festive demand.
Industry Assessment
The industry says existing stocks, earlier crushing, imports and refinery supplies will keep availability more than sufficient.
Price interpretation
Shortage Concerns
The brief rise to ₹49–50 per kg in the third week of August could be viewed as a sign of market pressure.
Industry Assessment
The associations say that increase affected only 2–3 lakh tonnes and did not represent season-wide economics; ex-mill and retail prices have since declined.
Production balance
Shortage Concerns
Net domestic production of about 279 lakh tonnes is close to normative annual consumption of 280–285 lakh tonnes, prompting concern about tight supply.
Industry Assessment
The industry expects around 35 lakh tonnes in closing stock, plus imports and additional refined supplies, providing an inventory cushion.
Key facts
- August ex-mill price
- About ₹41–41.5 per kg, compared with an industry average production cost of about ₹42 per kg.
- Retail price
- Around ₹62 per kg, nearly 5% below its peak.
- September sales quota
- The government allocated 13 lakh tonnes for the first fortnight of September.
- 2025–26 gross production
- Around 309 lakh tonnes, including 30 lakh tonnes diverted to ethanol.
- Expected closing stock
- About 35 lakh tonnes by the end of September.
- Duty-free imports
- The government allowed 10 lakh tonnes under the tariff-rate quota, with about 8 lakh tonnes allocated.
- Cane payments
- Mills have disbursed nearly ₹1.10 lakh crore, or about 97% of total cane dues.
Quotes
ISMA and NFCSF
Industry associations representing India’s sugar mills and farmers
“The brief surge to ₹49–₹50 per kg witnessed in the third week of August applied strictly to an isolated, fractional volume of only 2 to 3 lakh tonnes, which in no way reflected season-wide economics or windfall gains.”
businesstoday.in
“Transparent quota releases and prompt regulatory liquidations have already brought ex-mill prices down by 30%”
businesstoday.in
Sources
Related news
ISMA Says India’s Sugar Prices Will Ease Soon
India May Import Sugar After Nearly A Decade
India weighs sugar duty cuts as festive prices rise
Sugar industry proposes early cane crushing to boost festive supplies
Government Rejects Ethanol Link, Blames Hoarding for India Sugar Surge
India Allows Duty-Free Sugar Imports as Prices Surge
Centre Expands Rs 35 Onion Sales to 19 Cities
India Cuts Sugar Dealers’ Stock Limit Ahead of Festive Season
CBI Books FCI, NERAMAC Officials Over Subsidised Rice Diversion
Buffer Stock Release Sends Lasalgaon Onion Prices Lower
