ISMA Director General Deepak Ballani addresses a press conference on the recent surge in domestic sugar prices, in New Delhi on August 24.
| Photo Credit: ANI
With the government’s announcement last week permitting import of 10 lakh tonnes of raw sugar, the domestic prices are cooling down.
However, volatility in domestic sugar prices continues to be a matter of concern.
The current sugar marketing season that began on October 1 last year saw a substantial quantity of sugar sold at ₹38-Rs. 39 a kg (ex-mill price). Prices started going up in January, climbed to ₹48 a kg, and on Monday (August 24, 2026) stood at ₹56 a kg (Maharashtra ex-mill price).
The price was ₹58 a kg (Maharashtra ex-mill) on August 22 and ₹62 a kg on August 21.
An industry source said the ex-mill prices are likely to hover between ₹50 and ₹60 till November – December.
Office bearers of the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) told reporters in New Delhi on Monday (August 24, 2026) that the recent firmness in sugar prices should not be construed as a shortage of sugar in the country.
India’s sugar balance remains fundamentally comfortable, with net sugar production for 2025–2026 (sugar season) estimated at around 279 lakh tonnes (LMT) against domestic consumption of 280–285 LMT, and projected closing stocks of around 35 LMT. Adequate stocks are available to ensure uninterrupted domestic supplies through the transition into the next sugar year.
The recent increase in sugar prices is the result of a convergence of temporary factors, including lower-than-initially-expected production, heightened festive-season demand, market sentiment, and firm international sugar prices, according to the ISMA.
Welcoming the Union Government’s steps to stabilise prices, such as the import of 10 lakh tonnes of duty-free raw sugar, restrictions on holding stocks, and the possible advancement of the 2026–27 crushing season, they said that such measures together constitute a comprehensive package aimed at strengthening market confidence, discouraging speculative holding, and facilitating smooth availability of sugar.
Sugar mill sources say imported sugar, probably from Brazil, will land in Indian ports only by mid-October. The government has also permitted sugar refineries that have stocked sugar imported under an advance licence (for export after value addition) to sell some of the stock in the domestic market.
Published – August 24, 2026 10:27 pm IST
