Seasonal supply tightness pushes up sugar prices, no shortage expected: Tarun Sawhney
Triveni Engineering & Industries said India’s higher sugar prices reflect seasonal supply tightening rather than shortages. The company expects prices to remain firm until the next crushing season, while improved cane development, especially in Uttar Pradesh, should support higher production and market stability.
Sugar prices have increased in the country. Tarun Sawhney, Vice Chairman and Managing Director, Triveni Engineering & Industries Ltd., said that the recent increase in sugar prices is primarily due to the seasonal tightening of supplies as we near the end of the current sugar season.
Sawhney said, “At this stage of the year, sugar stocks naturally come down, and with production this season being lower than domestic consumption, the market has seen some upward movement in prices. However, this should not be viewed as a supply shortage. India continues to have adequate sugar availability to comfortably meet domestic demand, with closing stocks expected to be around 33–35 lakh tonnes, sufficient to ensure market stability during the intervening period before the next crushing season”.
He said that Uttar Pradesh will remain central to this balance. “As one of India’s largest sugar-producing states, UP’s strong cane base, improving recoveries and sustained investments by mills in farm-level productivity and cane development will play an important role in supporting availability in the coming season. The state’s contribution is particularly significant in maintaining a stable supply outlook for the domestic market,” he stated.
Sawhney expects prices to remain firm until fresh sugar starts arriving from the next crushing season. That said, we do not expect any sharp or unusual rise, as the government and the industry have worked together to ensure sufficient domestic availability while continuing to support India’s ethanol blending programme in a balanced and sustainable manner.
Looking ahead, he said that the outlook for the next sugar season is encouraging. “Despite the impact of the El Nino on monsoon rains, of which full impact is yet to be seen in certain regions, healthy cane development in major sugar-producing regions, and the continued adoption of improved agronomic practices are expected to support a recovery in sugar production. If weather conditions remain favourable during the remainder of the crop cycle, the demand-supply balance should improve, leading to a more stable market”.
“Over the long term, India’s sugar sector is becoming increasingly resilient, driven by higher farm productivity, technology-led cane development initiatives, and a stable policy environment. These factors will help strengthen the industry’s ability to meet domestic demand while creating sustainable value for farmers, consumers, and the broader biofuels ecosystem,” he said.
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Source : ChiniMandi
