Sugar supply adequate, retail prices likely to ease: ISMA

The Indian Sugar Mills Association (ISMA), the apex industry body for sugar, on Monday asserted that there is no shortage of sugar in the country and that retail prices are expected to decline. Addressing a press conference in New Delhi, ISMA President Niraj Shirgaokar attributed the recent price rise to multiple factors, including speculative buying by traders and bulk consumers, as well as lower production caused by adverse weather conditions.

Mr. Shirgaokar categorically stated that sugar mills were not involved in creating artificial scarcity or inflating ex-mill prices. He said prices have already begun to ease following the government's decision to allow duty-free imports of 1 million tonnes of raw sugar.

“India does not have a sugar shortage,” Mr. Shirgaokar told reporters. He provided data to support this claim, stating that the closing stock of sugar at the end of September would be 35 lakh tonnes. Furthermore, mills are expected to start operations by around October 15 and produce approximately 10–12 lakh tonnes during October. The projected demand for October is 24–25 lakh tonnes, he added.

The ISMA president’s remarks come amid concerns over rising sugar prices in the domestic market. The government’s move to permit duty-free imports is aimed at augmenting supply and stabilising prices. Industry observers note that the combination of adequate closing stocks, upcoming production, and imports should help meet demand in the coming months.

While the immediate outlook appears stable, the impact of weather conditions on the forthcoming sugarcane crop remains a factor to watch. ISMA’s assertion provides some assurance to consumers and businesses that supplies are sufficient to meet domestic requirements.