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Informist, Friday, Jul. 17, 2026

 

--ISMA: India has adequate sugar stocks, no cause for speculation 

--CONTEXT: ISMA, NFCSF issue joint statement on sugar availability 

--ISMA: Recent price rise due to speculation, not demand-supply fundamentals 

--ISMA: Appealing against speculative buys, sugar hoarding, misinformation 

 

MUMBAI – Following the recent surge in sugar prices, industry associations have appealed to market participants to refrain from speculative buying, hoarding, and spreading misinformation on the availability of sugar. The country has adequate stocks and the supply position remains comfortable, Indian Sugar & Bio-energy Manufacturers Association and the National Federation of Cooperative Sugar Factories Ltd. said in a joint statement. 

 

"Following discussions with the Government of India, we wish to reassure all stakeholders that India's sugar availability remains comfortable and the country has adequate sugar stocks to comfortably meet domestic consumption requirements," according to the statement. "There is no justification for panic buying or speculative trading in the domestic sugar market." 

 

Since June, sugar prices have firmed up amid anticipation of supply shrinking in the coming months. The rainfall deficit in the ongoing monsoon season has also added a weather premium to sugar rates. During the season so far, the average rainfall over the country was at 231.3 millimetres, 24?low normal. 

 

ISMA and NFSCF told the government that sugar mills have agreed to commence the 2026–27 sugar season at "the earliest possible date", based on "prevailing agro-climatic conditions," the statement said. "An early start to crushing will bring fresh sugar into the market sooner, further strengthening domestic supplies, enhancing market confidence, and dispelling any unwarranted concerns regarding sugar availability." 

 

Since June, sugar prices have risen over 15% in Maharashtra markets, Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said. On Jun. 1, ex-mill sugar rates were around INR 3,940-INR 4,150 per 100 kilograms in Maharashtra. On Friday, prices were around INR 4,370-INR 4,552 in Mumbai and Kolhapur. 

 

In the statement, the industry bodies said the recent price rise was not supported by underlying demand-supply fundamentals. "Creating an impression of scarcity when sufficient stocks are available can lead to unnecessary market volatility, disrupt normal trade, and adversely affect consumers as well as downstream industries," it added. 

 

Amid persistent speculative buying, on Friday, there was widespread market chatter that the government might intervene to check prices by releasing weekly sales quotas and imposing stockholding limits for wholesale traders and bulk consumers. There was also chatter about the government permitting sugar imports at nil duty to ensure supply.

 

Last week, the government imposed stringent rules on sugar mills to reduce their stockholding and ensure adequate availability of the sweetener in the market. As per an order on Jul. 9, mills that dispatch less than 90% of their sales quota for a particular month would face a restricted quota for the subsequent month.  End

 

Reported by Afra Abubacker 

Edited by Avishek Dutta

 

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