Sugar industry says recent price spike not supported by fundamentals

ISMA and NFCSF said India has adequate sugar stocks to meet domestic demand and urged traders and buyers to avoid speculative purchases and hoarding

India's sugar sector on Friday said the recent upward price movement is not supported by any fundamentals and that the country has sufficient stocks to meet all its consumption needs.

 

It also urged market participants to refrain from speculative buying or hoarding amid the recent price movement.

 

In a joint statement, the Indian Sugar and Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd (NFCSF) said consultations with the Centre reaffirmed that India's sugar supply position remains comfortable, with adequate inventories available to meet domestic demand.

 

The industry said there was no justification for panic buying or speculative trading.

 

India's sugar prices have risen by almost Rs 4,000 per tonne over the past month, from around Rs 38,000-42,000 for S-grade sugar in Maharashtra, over concerns that dry weather in June might crimp final output in the 2026-27 season, which will begin in October 2026.

 

India's southwest monsoon was almost 37 per cent below normal in June, with large tracts of sugarcane-growing belts in Maharashtra and Uttar Pradesh remaining devoid of rain.

 

Though there has been a pick-up in showers since early July, rainfall is still well below normal levels.

 

The two industry bodies, meanwhile, said sugar mills had agreed to begin the 2026-27 crushing season at the earliest feasible date, subject to prevailing agro-climatic conditions.

 

An early start to crushing is expected to bring fresh sugar into the market sooner, strengthening domestic supplies and helping stabilise market sentiment.

 

The industry bodies appealed to traders, wholesalers, retailers, institutional buyers and other market participants to avoid speculative purchases, hoarding and spreading misleading information on sugar availability. They said such practices create artificial uncertainty and run counter to the interests of consumers, farmers and the industry.

 

They reiterated that the sugar industry would continue to work closely with the Government of India to ensure uninterrupted supplies, timely availability across regions and price stability.

 

The industry also pledged to safeguard the interests of sugarcane growers and sugar mills while ensuring sugar remains available to consumers at reasonable prices.