Indian sugar prices surge to unprecedented levels as supply anxieties grip market
Sugar prices in India have reached historic highs due to regional stock shortages and an export ban. However, industry bodies and the government maintain that national supply is adequate and urge restraint against panic buying. The market awaits relief from a projected rise in production next season.
A sharp uptick in sugar prices across India has put the spotlight on the country’s supply chain, with consumers and industry stakeholders closely watching the developments as retail and wholesale rates touch record highs.Regional imbalances trigger national price surgeMinistry of Consumer Affairs. Wholesale ex-mill prices also soared, averaging ₹44 per kilogram nationwide—an increase of around 14 per cent compared to last year, which industry experts say is unparalleled.Maharashtra and Karnataka, India’s top and third-largest sugar-producing states, respectively. Lower inventories in these regions have been a primary factor behind the current price spike. As mills in these states deplete their stocks, those in other regions are positioned to benefit from the price momentum, noted Praful Vithalani, chairman of sugar trading firm Jagjeevan Keshavji & Co.Industry leaders and government seek to calm market nervesIndian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd (NFCSF) emphasized that stock levels are sufficient to meet consumer and industrial demand.Export ban and inventory shifts reshape supply landscapeUttar Pradesh.The Economic Times.Production outlook: Recovery on the horizon?Market analysis and downstream impactLooking ahead