'No sugar shortage': ISMA says India has enough stocks, prices to cool down soon
Industry representatives from India's sugar sector have assured that there is no shortage of sugar in the domestic market. The surge in retail prices is attributed to stockpiling speculation and adverse weather impacting production. To mitigate this, the government is facilitating duty-free sugar imports, particularly from Brazil, with some raw sugar expected to arrive before mid-October. Current…
India's Sugar Mills Association (ISMA) has reported that the country does not face a sugar shortage, reassuring markets amid recent price increases. ISMA President Niraj Shirgaokar explained that price hikes were primarily driven by speculative stocking and reduced production due to adverse weather conditions. He affirmed that India possesses ample stocks and supplies to satisfy festival demand.
Following a 24% spike in sugar prices within a month, reaching Rs 56-60 per kg in retail and wholesale markets, the Indian government authorized duty-free imports of up to 1 million tonnes of raw sugar on August 20. However, both ISMA and the National Federation of Cooperative Sugar Factories (NFCSF) maintain that domestic supplies are sufficient.
NFCSF President Prakash Naiknavare reiterated his organization's production estimate for the 2025-26 season at 279 lakh tonnes, excluding an estimated 24 lakh tonnes allocated for ethanol production.
The federation anticipates opening stocks of 35 lakh tonnes for the 2026-27 season, commencing on October 1. With monthly domestic demand projected at around 22 lakh tonnes, 15-20 lakh tonnes are expected to be carried into November, when initial crushing operations are anticipated to inject additional supplies. While some sugar shipments may arrive before October 15, arriving quantities remain uncertain due to various factors such as DGFT approvals, letters of credit, and shipment scheduling. Despite the challenge, some shipments could potentially reach Indian ports before the deadline.
The government is unlikely to strictly enforce the October 31 arrival deadline, suggesting that shipments already in transit could still be considered even if they arrive later. Landlocked northern states traditionally receive such imports via ports, with distribution through road or rail. India exported only 8 lakh tonnes of sugar, well below the permitted quota of 20 lakh tonnes, due to unfavourable international price conditions.
Even without export restrictions, exports were unlikely to exceed 10 lakh tonnes, as emphasized by Shirgaokar.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- India's sugar industry body shares a positive price outlook economictimes.indiatimes.com
