India’s sugar consumption seen around 277 LMT in 2025–26: Deepak Ballani, DG, ISMA
India’s sugar consumption for 2025–26 is revised down to 277 LMT due to West Asia tensions and LPG shortages impacting demand from eateries. Despite stable production (~320 LMT), unsold stock and rising cane arrears (₹16,000 crore) highlight industry stress, while exports remain limited and ethanol diversion continues to shape supply dynamics.
India’s sugar consumption for the 2025–26 season is projected to decline to 277 LMT, from the earlier estimate of 283 LMT, according to Indian Sugar & Bio-energy Manufacturers Association (ISMA) Director General, Deepak Ballani.
Speaking on the sidelines of the ISMA SugarNxt Conference, Ballani attributed the downward revision to a combination of geopolitical tensions in West Asia and unusually cold weather, both of which have dampened demand.
He noted that sugar consumption had remained robust during the early part of the season, from October 2025 to February 2026, when despatch was higher by nearly 60,000 tonnes compared to the same period last year. However, the situation shifted as the West Asia conflict escalated.
Ballani explained that disruptions in LPG availability, particularly affecting small restaurants and roadside eateries (dhabas), led to a slowdown in sugar offtake. As a result, nearly 2 LMT of sugar remained unsold from the monthly release quota. This trend may persist into April if the geopolitical tensions continue.
On the supply side, India’s gross sugar production is estimated at around 320 LMT, with around 34 LMT expected to be diverted towards ethanol production.
Sugar exports are likely to remain subdued. Ballani indicated that sugar exports in the current season are expected to stay below 800,000 tonnes.
Meanwhile, the industry continues to grapple with mounting financial stress. Sugarcane arrears have risen to ₹16,000 crore, which is ₹5,000 crore higher than last year, highlighting the growing liquidity challenges faced by mills.
Echoing industry concerns, Harshvardhan Patil, President of the National Federation of Cooperative Sugar Factories (NFCSF), said that sugar mills in Maharashtra are under severe financial strain due to the mismatch between high cane procurement prices and relatively lower sugar prices.
He urged the government to consider revising the Minimum Selling Price (MSP) of sugar, stating that such a move is essential to improve cash flows and ensure the financial viability of mills.
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Source : Chinimandi
