ISMA, NFCSF say no sugar shortage, expect prices to ease in 7-10 days
India’s sugar industry says there is no shortage, with ex-mill prices below ₹5,000/quintal and retail prices expected to ease to ₹50–52/kg within 7–10 days. ISMA and NFCSF cited adequate stocks, additional refinery supplies and imports, while supporting early crushing. They warned of potential 2027-28 supply risks from weather and El Niño.
The Indian sugar industry has ruled out any shortage of sugar in the country and said retail prices are likely to ease substantially over the next 7-10 days as ex-mill prices have already fallen below Rs5,000 per quintal across major producing regions.
The Indian Sugar and Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) jointly addressed the media to dispel concerns over sugar availability and urged consumers not to panic or resort to excessive buying.
NFCSF president Harshvardhan Patil said the country has sufficient stocks to meet domestic consumption until fresh sugar from the next crushing season enters the market.
“We have adequate supply of sugar till the new sugar comes into the market. There is nothing to panic,” Patil said, adding that both associations were working with the government to prevent misinformation and unnecessary panic in the market.
The industry said sugar prices have already corrected from their recent highs. Current ex-mill prices cited by the associations include Rs 4,460-4,500 per quintal for Maharashtra S-grade, Rs 4,740 for Gujarat M-grade and Rs 4,960 for Karnataka, which was among the markets that had recorded higher prices.
According to the associations, ex-mill prices across the country are now below Rs 5,000 per quintal. Patil said retail prices, however, have not yet fully reflected this correction and are currently around Rs 63 per kg in some markets.
The industry estimates that the normal difference between ex-mill and retail prices should be around Rs 5-8 per kg. On this basis, retail prices should move towards Rs 50-52 per kg, Patil said.
ISMA Director-General Deepak Ballani said the decline in ex-mill prices should gradually pass through the supply chain and bring relief to consumers. He expressed confidence that the market would see a substantial correction within the next 7-10 days.
The government has also taken several steps to improve sugar availability. Ballani said sugar refiners have been permitted to sell their stocks in the domestic market, with around 3.5 lakh tonnes expected to reach the market by October 5.
In addition, applications have already been received for around 8 lakh tonnes of sugar imports under the tariff-rate quota (TRQ). The government has opened the window for the remaining 2 lakh tonnes, giving applicants one week to apply.
“With sufficient sugar already available in the country and additional supplies coming through imports and refiners, there is absolutely no reason for panic,” Ballani said.
The associations also pointed to the government’s monthly sugar release mechanism, under which quantities are allocated according to domestic demand. Patil said around 90% of the 22.5 lakh tonnes of sugar quota allocated for August had already been sold, indicating that the recent price rise was not due to a physical shortage.
He said sugar prices had averaged around Rs 39 per kg in July before rising sharply in August. However, only around 1-2 lakh tonnes were sold at elevated prices, while most of the sugar had been sold earlier at lower rates.
The industry also defended the government’s ethanol policy against criticism that diversion of sugarcane towards ethanol had caused the recent price rise. Ballani said ethanol production has benefited sugarcane farmers and should not be blamed for a temporary movement in sugar prices.
Patil said around 72% of ethanol supplied to the fuel market is now sourced from grains, while the sugar industry accounts for a smaller share. He also highlighted the foreign exchange savings and farmer payments associated with the ethanol programme.
Meanwhile, ISMA and NFCSF are backing an early start to the upcoming sugarcane crushing season to ensure continued availability of sugar.
Patil said the associations met Food and Civil Supplies Secretary Chopra to discuss starting factories earlier. “Whatever stand the government takes to start sugar factories early, we will support it,” he said.
In Maharashtra, the associations have requested Chief Minister Devendra Fadnavis, who heads the ministerial committee that decides the crushing season, to convene a meeting on the issue. The industry has already submitted the agenda and is awaiting the state government’s decision.
While ruling out any immediate shortage, Patil warned of a potential supply challenge in the 2027-28 season due to inadequate rainfall in parts of Maharashtra and Uttar Pradesh and concerns over sugarcane planting. The possible impact of El Niño could further add to the risk, he said.
The industry maintained that a balanced approach is required to protect farmers, consumers and sugar mills. It reiterated that current sugar supplies are adequate and said the focus should now be on ensuring that the recent fall in ex-mill prices reaches consumers during the upcoming festive season.
Prakash Naiknavre, MD, NFCSF and Madhav Shriram, vice president ISMA were also present on the occasion.
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Source : ChiniMandi
