Despite the rise in sugar prices, there is positive news for the public. The Indian Sugar and Bioenergy Manufacturers Association (ISMA) states that sugar prices may begin to fall within the next seven days because there is no real shortage in the country, and existing stocks are adequate.
Recently, the cost of sugar has risen from approximately 42 to 55 rupees per kilogram, representing an increase of about 16%. However, ISMA emphasizes that this price jump is not caused by a supply crisis. The main reasons cited are market sentiment, increased demand during the festive season, and changes in consumer behavior.
Weather conditions have also influenced the price increase. Poor weather negatively affected the sugarcane harvest. Furthermore, issues related to higher extraction rates in Maharashtra and certain sugarcane varieties in Uttar Pradesh impacted the market, although the Association does not consider these factors the cause of a real shortage.
According to ISMA Chairman Niraj Shirgarkar, demand for sugar increased with the start of the festive season. The situation with supplies in Brazil created additional pressure on the international market. ISMA reports that large buyers have begun accumulating excess sugar stocks, which disrupted regular market turnover and created an atmosphere of artificial scarcity. The Association believes that speculation has intensified the price increase.
ISMA also clarified the situation regarding accusations against ethanol in the current price hike. The Association considers it incorrect to link the price increase to a lack of sugar, pointing out that current sugar stocks in the country are at a comfortable level.
According to ISMA data, the initial sugar stock for the next year is expected to be around 3.5 million tons, which is seen as an indication of sufficient supply. Therefore, there are no concerns about a large-scale availability crisis. ISMA advises consumers purchasing sugar for household use not to worry or accumulate excessive stocks, as there is no real shortage in the market, and the current rise is due to market sentiment, festive demand, and additional purchases by large buyers.