India Sugar Market: No Shortage, Says ISMA Amid Festive Demand

The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has clarified that India is not experiencing an actual sugar shortage. Recent market tightness stems from increased festive-season buying and tighter global supplies, according to the association.

Niraj Shirgaonkar, President of ISMA, noted that bulk buyers were accumulating inventories in anticipation of the festive period. This precautionary stocking has contributed significantly to the current market pressure rather than a fundamental supply deficit.

India is projected to produce approximately 279 lakh tonnes of net sugar this season. An estimated closing stock of 35 lakh tonnes indicates sufficient domestic supply to meet consumption needs.

Global Market Dynamics

The global sugar market has also seen tightening conditions, exacerbating the domestic situation. Lower production estimates from Brazil have pushed international prices higher, climbing from $474 a tonne in June to nearly $552 a tonne by August.

ISMA categorizes the prevailing market scenario as “artificial tightness,” primarily influenced by inventory building. This distinguishes it from a genuine scarcity of the commodity.

Strategic Interventions

To address this, ISMA is actively working to advance the 2026-27 crushing season by 10 to 15 days. Additionally, special crushing operations are already underway in Tamil Nadu and Karnataka to boost immediate availability.

These proactive measures are expected to significantly increase sugar availability in October. Production is forecast to reach around 10 lakh tonnes, more than double the typical monthly output of 4 lakh tonnes, aiming to stabilize supplies during the peak festive demand.