The Indian Sugar Mills Association (ISMA) has confirmed that India faces no sugar shortage and retail prices are expected to decline in the coming weeks. ISMA president Neeraj Shrigaonkar told a press conference in New Delhi on Monday, August 24, that recent price hikes were driven by speculative buying and reduced output due to bad weather, not by any artificial shortage created by mills. He made it clear that sugar mills played no role in creating an artificial scarcity or in pushing up ex-mill prices.
Government Allows 10 Lakh Tonne Duty-Free Raw Sugar Import
The government has permitted duty-free import of 10 lakh tonnes of raw sugar to cool domestic prices. ISMA said this move has already started easing pressure in the wholesale market. The association expects the country to have a closing stock of around 35 lakh tonnes by the end of September, which it says is enough to meet domestic demand. Shrigaonkar stated that there is simply no shortage situation in the country and the available stock is sufficient to cover household needs.
New Crushing Season to Start Around October 15
The new sugar crushing season is set to begin around October 15. ISMA estimates mills will produce about 10 to 12 lakh tonnes of sugar in October. Domestic consumption for the same month is pegged at roughly 24 to 25 lakh tonnes. The gap between production and demand will be bridged by existing stocks and imported sugar, ISMA said. The early season gap is expected to be temporary and manageable.
Impact on Consumers and Household Expenses
The recent spike in sugar prices has directly hit household budgets and raised costs for tea, sweets, bakery items, and other food products. ISMA advised consumers not to panic buy at inflated rates, saying adequate stock is available. The actual pace of retail price decline will depend on domestic output, demand levels, import availability, and market buying activity. The association’s message is clear and simple – there is no shortage in India and consumers should not rush to buy sugar at higher prices.
