As sugar prices soar, manufacturers assure sufficient stocks and sugar availability

Even as domestic sugar prices continue to rise, Indian sugar manufacturers have cautioned against speculative trading and panic buying, asserting that the country has adequate sugar availability to meet the demand.

The spot price of M30-grade sugar, as listed on ChiniMandi portal, stood at Rs 4777.5 per quintal in Delhi and Rs 4956 per quintal in Chennai on July 17. A month earlier, on June 17, the same grade was priced at Rs 4389 per quintal in Delhi and Rs 4578 per quintal in Chennai reflecting a sharp rise in prices.

Following a discussion with the government in the wake of rising sugar prices, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd. (NFCSF) issued a joint statement assuring all stakeholders that India's sugar availability situation remains comfortable in the country.

During consultation with the government, the sugar industry agreed to commence the 2026–27 sugar season at the earliest possible date, based on prevailing agro-climatic conditions. “This proactive decision reflects the industry's commitment to ensuring orderly market supplies and maintaining adequate sugar availability across the country. An early start to crushing will bring fresh sugar into the market sooner, further strengthening domestic supplies, enhancing market confidence, and dispelling any unwarranted concerns regarding sugar availability”, ISMA and NFCSF joint statement said.

According to the sugar industry, the recent price movement is not supported by the underlying demand-supply fundamentals. “Creating an impression of scarcity when sufficient stocks are available can lead to unnecessary market volatility, disrupt normal trade, and adversely affect consumers as well as downstream industries”, ISMA and NFCSF said.

The sugar manufacturers appealed to all stakeholders—including traders, wholesalers, institutional buyers, retailers and market participants—to refrain from speculative buying, hoarding, or spreading misleading information regarding sugar availability. Such actions only create artificial uncertainty and are against the larger interest of consumers, farmers, and the industry, they said.

The industry stated it remains fully committed to ensuring continuous and adequate supplies of sugar, timely availability across all regions, and maintaining market stability. The associations also assured that the industry will continue to work closely with the Government of India to ensure that sugar remains readily available to consumers at reasonable prices while safeguarding the interests of sugarcane farmers and sugar mills.

“A stable and transparent market is in the collective interest of consumers, farmers, traders, and the sugar industry alike” ISMA and NFCSF said.