New Delhi: Here is some relief for Indian families concerned with the soaring prices of sugar. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has said that there is no shortage of sugar in the country and retail prices are expected to come down in the coming days.
But there has been a sharp rise in sugar prices in recent weeks that has resulted in concerns over its availability for households, particularly during the holiday season. But ISMA President Niraj Shirgaokar stated that this price hike is mainly due to the short term demand-supply imbalance and it does not indicate shortage of sugar in the country.
ISMA are attributing the increase to speculative trading by traders and bulk consumers as well as reduced production due to poor weather. The sugar industry body also did not notice any artificial shortage of sugar in the market.
The government has already made some efforts to boost supplies. It has enabled 1 million tonnes of raw sugar to be imported duty free, which will be expected to supply more sugar to the domestic market and help eliminate price pressure. Sugar price has already began to get muted since the government’s import decision.
Greater relief may be provided from domestic production. Sugar mills are poised to crush sugar earlier than the usual, while there is a likely increase in the production during October, says ISMA. Sugar supplies are anticipated to further improve due to existing stocks, fresh production and imports.
ISMA has estimated the India’s net sugar production in 2025-26 as approximately 27.9 MT and closing stocks as approximately 3.5 MT. The industry body thinks this is sufficient to fulfil the demand whether at home or at a higher demand during the festive period.
The most welcome development for the consumers is that sugar prices are likely to ease in the coming 7-10 days due to natural increase in supply and as the festive buying trend is getting normal. Retail prices, however, may not necessarily drop down right away on everyone, so it might take some time for the lower wholesale price to be pushed to retail outlets.
Indian families may be able to get some respite from the sugar price spike this year as stocks are adequate, new imports are expected, and more is being produced domestically.
