Rising sugar prices in the domestic market have raised concerns among consumers (Img: Pexels)
New Delhi: Rising sugar prices in the domestic market have raised concerns among consumers, but the Indian Sugar Mills Association (ISMA) has assured that there is no shortage of sugar in the country. The industry body said prices are expected to soften in the coming days as duty-free imports begin arriving and sugar mills prepare to increase production from the upcoming crushing season.
ISMA President Niraj Shirgaokar said the recent increase in sugar prices was due to multiple factors, including lower production caused by adverse weather conditions and increased buying by traders and bulk consumers. He rejected claims that sugar mills were responsible for creating an artificial shortage.
“India does not have a sugar shortage,” Shirgaokar said, adding that sufficient stocks are available to meet domestic demand.
According to ISMA, India is expected to have around 35 lakh tonnes of closing sugar stock by the end of September. The association said this stock, along with fresh production from the new crushing season, will help maintain supply in the domestic market.
Sugar mills are likely to restart operations around October 15 and are expected to produce around 10 to 12 lakh tonnes of sugar during October, while monthly domestic demand is estimated at around 24 to 25 lakh tonnes.
The government’s decision to allow duty-free import of 10 lakh tonnes of raw sugar has already started impacting the market, ISMA said. The industry expects additional supplies from imports to reduce pressure on domestic prices.
Officials and industry representatives believe that imported sugar, combined with fresh production from Indian mills, could help stabilize prices in the coming weeks.
Industry experts said Brazil is currently the most likely source for India's sugar imports. However, transportation from Brazil to India usually takes around 40 to 45 days, followed by additional time for movement from ports to sugar mills.
National Federation of Cooperative Sugar Factories (NFCSF) President Prakash Naiknavare said some consignments could reach Indian ports before October 15, but the exact quantity would depend on shipping schedules, approvals and port conditions.
The recent rise in sugar prices has been attributed to several reasons, including:
The government has also intensified action against hoarding and taken steps to improve availability through imports.
With imported sugar expected to enter the market and domestic mills likely to resume crushing operations from October, industry experts believe supply conditions could improve.
The combination of higher availability, government measures and fresh production may help bring down sugar prices and provide relief to consumers in the coming months.
