No Sugar Shortage In India, Prices Likely To Ease In Coming Weeks, Says ISMA

India has sufficient sugar stocks to meet domestic demand, and prices are likely to moderate over the next few weeks as supplies improve, the Indian Sugar and Bio-energy Manufacturers Association (ISMA) said on Monday, dismissing concerns of an actual shortage in the market.

ISMA Director General Deepak Ballani said the sharp rise in sugar prices over the past 15-20 days was driven largely by market sentiment, speculative buying and concerns over short-term supply rather than any structural shortage.

Crop-related developments and global market conditions had influenced prices, he said.

According to Deepak Ballani, lower-than-expected sugar production last year in parts of Uttar Pradesh due to red rot disease and premature flowering in sugarcane affected market sentiment.

At the same time, tighter global sugar availability pushed up international prices, which had an impact on the domestic market.

Deepak Ballani said sufficient sugar would remain available until the end of the current season on September 30, with the market situation expected to improve shortly. He said prices had already started showing signs of moderation and expected the trend to gradually reflect in the retail market, providing relief to consumers.

ISMA President Neeraj Shirgaokar assured consumers that the country has adequate stocks and would face no difficulty in meeting demand, including during the upcoming festive season.

Speaking to IANS, Shirgaokar said sufficient stocks would remain available even as the new sugar season approaches. He added that measures taken by the government would further improve market conditions and help ensure adequate supplies.

Neeraj Shirgaokar said market sentiment ahead of the festive season largely drove the current situation and that it did not represent a structural supply crisis.

Ethanol Programme

ISMA Vice President Madhav B Shriram rejected the argument that the ethanol programme was responsible for the recent increase in sugar prices.

B Shriram said sugar mills and warehouses have adequate stocks and that the projected shortage does not match the ground reality. He added that sugar is available and the impact of steps taken by the government would be visible soon.

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