The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has said there is no shortage of sugar in the country and retail prices are expected to ease within the next week to 10 days as supplies improve.
ISMA President Niraj Shirgaokar said sugar prices had risen in recent weeks due to speculative buying by traders and bulk consumers, along with lower production caused by adverse weather conditions. He also rejected claims that sugar mills were creating artificial scarcity or deliberately pushing up ex-mill prices.
According to ISMA, India's sugar balance remains comfortable. Net sugar production for 2025-26 is estimated at around 27.9 million tonnes, against domestic consumption of about 28-28.5 million tonnes. The closing stock is projected at around 3.5 million tonnes by the end of September.
The industry body said prices have already started easing following the government's decision to permit duty-free imports of one million tonnes of raw sugar. The additional imports, along with existing stocks, are expected to ease supply pressure in the market.
Sugar mills are also expected to begin the next crushing season earlier than usual. Crushing is likely to start around October 15, with production in October estimated at around 10-12 lakh tonnes, compared with the usual 4-5 lakh tonnes. Special crushing operations are also underway in parts of Tamil Nadu and Karnataka.
ISMA Vice-President Madhav B. Shriram said the additional domestic production, existing stocks and calibrated releases should help ease pressure on prices as festive-season buying normalises. October sugar demand is estimated at around 24-25 lakh tonnes.
With imports being allowed and domestic crushing set to begin earlier, the sugar industry expects retail prices to weaken further over the coming days. ISMA maintained that the current price rise reflects temporary supply and demand pressures rather than an actual shortage of sugar in India.
