The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has clarified that India does not face an actual sugar shortage, saying the recent market tightness is largely due to festive-season buying and tighter global supplies.
Niraj Shirgaonkar, President ISMA said market sentiment had tightened ahead of the festive season, prompting some bulk buyers that typically purchase sugar on a just-in-time basis to build inventories.
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“India doesn't have a sugar shortage,” Shirgaonkar said, adding that the country is estimated to produce around 279 lakh tonnes of net sugar this season, with projected closing stocks of roughly 35 lakh tonnes.
The domestic buying pressure has coincided with a tightening global sugar market.
Lower-than-expected production estimates from Brazil have reduced international supplies, pushing sugar prices from about $474 a tonne in June to nearly $552 a tonne in August.
According to ISMA, some of the resulting tightness is driven by precautionary stocking rather than an underlying shortage of sugar, creating what the industry body described as “artificial tightness”.
To ease pressure, ISMA is working to advance the start of the 2026-27 crushing season by 10 to 15 days.
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Special crushing operations are already underway in Tamil Nadu and Karnataka, adding to stocks available in the market.
The measures are expected to increase sugar availability in October, with production projected at around 10 lakh tonnes, more than double the normal monthly output of about 4 lakh tonnes.
The industry body expects increased production and existing inventories to help stabilise supplies as festive-season demand gathers pace.
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