The All India Sugar Trade Association (AISTA) has strongly rejected reports of sugar shortage, calling them 'unwarranted' despite significant price increases. AISTA Chairman Praful Vithalani stated that the recent rise in ex-factory sugar prices -- about 15% in less than a month -- has created an unwarranted impression of a shortage. In a communication to its 700 affiliated principal members and associations, AISTA emphasized that the industry bodies had jointly clarified on July 17 that the country has adequate sugar stocks to meet domestic demand. The association urged stakeholders across the sugar value chain to take 'positive steps' to ensure the sweetener remains readily available nationwide.
As reported by Business Standard, India's sugar prices have risen by almost ₹4,000 per tonne over the past month, with S-grade sugar in Maharashtra currently trading at ₹38,000-42,000 per tonne. The price increase has been driven by concerns over potential output disruptions in the upcoming season. June was one of the worst monsoon months since records began to be kept, 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 remains well below normal levels.
Global sugar markets are facing additional pressure from heavy rainfall in Brazil's Center-South region, the world's most influential production hub, which is delaying sugar harvesting and crushing operations. According to market reports, unseasonably heavy rainfall across the primary sugar-producing belt has interrupted harvesting and crushing operations, leading to concerns over a temporary tightening of physical supplies. Adding to the bullish sentiment is the recent appreciation of the Brazilian Real against the U.S. Dollar, which discourages Brazilian producers from selling sugar denominated in dollars as it reduces their local currency returns. This currency dynamic typically restricts the flow of exports into the global market, providing a firm floor for international prices.
According to the joint industry statement reported by Business Standard, consultations with the Centre have reaffirmed that India's sugar supply position remains comfortable, with adequate inventories available to meet domestic demand. The industry bodies noted that 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 stabilize market sentiment. AISTA expects favourable weather, without excessive rainfall during the early harvest period, to allow cane cutting and crushing to proceed without interruption.
As reported by Business Standard, the industry bodies have made specific appeals to various market participants. They urged traders, wholesalers, retailers, institutional buyers and other market participants to avoid speculative purchases, hoarding and spreading misleading information on sugar availability. The industry emphasized that such practices create artificial uncertainty and run counter to the interests of consumers, farmers and the industry. AISTA Chairman Praful Vithalani called on members to keep the 'supply pipeline flowing smoothly' and avoid practices that could disrupt it, while asking members to refrain from panic buying or speculative stocking, comply with government norms, and disregard 'misleading information or rumours'. The sector pledged to safeguard the interests of sugarcane growers and sugar mills while ensuring sugar remains available to consumers at reasonable prices.
