Sugar prices likely to cool soon as ISMA says India has enough stocks

After a sharp rise in sugar prices, industry bodies expect supplies to improve with duty-free imports and increased domestic production

PGurus Newsdesk

August 24, 2026

Sugar supplies are expected to improve as duty-free imports arrive and Indian mills prepare to boost production ahead of the festive season

Duty-free imports and early crushing expected to ease supply concerns

Sugar prices in India are expected to ease soon, with the Indian Sugar and Bio-energy Manufacturers Association (ISMA) saying there is no shortage of the sweetener despite a recent rise in retail prices. The industry body said supplies remain fundamentally strong, while duty-free imports and preparations by sugar mills to increase output are expected to improve availability.

The recent increase in sugar prices has raised concerns ahead of the festive season. Retail and wholesale prices have risen sharply, prompting the Centre to allow duty-free imports of up to 1 million tonnes of raw sugar. ISMA, however, maintained that the country has sufficient stocks to meet domestic demand.

Imports and early crushing to boost supplies

Industry representatives said some imported sugar consignments could reach India before October 15, with Brazil currently considered the most realistic source of imports. Thailand, another major sugar producer, is facing a supply shortfall of its own.

The National Federation of Cooperative Sugar Factories has also maintained its production estimate for the 2025-26 season at 279 lakh tonnes, excluding sugar diverted for ethanol production. For the 2026-27 season beginning October 1, it has estimated opening stocks at around 35 lakh tonnes.

With domestic consumption estimated at around 22 lakh tonnes a month, the federation expects 15-20 lakh tonnes to be carried into November, when early crushing is expected to bring fresh supplies into the market.

The government has also encouraged sugar mills to advance their crushing schedules to help maintain supplies during the high-demand festive period.

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