ISMA Attributes ‘Unnatural’ Sugar Price Surge to Stocking and Speculation
NEW DELHI: The Indian Sugar Mills Association (ISMA) has stated that there is no actual shortage of sugar, despite a recent surge in prices. The association attributed the 29% increase in retail prices over the past month to speculative behavior and excessive stocking by bulk consumers. ISMA expressed hope for a reduction in prices following government interventions.
ISMA dismissed claims that the diversion of sugar for ethanol production is contributing to supply tightness. According to the association, only 290 crore liters of ethanol out of a total of 1,200 crore liters this supply year (October 2025 – September 2026) came from sugar. ISMA officials emphasized that allocations for ethanol production are made only after ensuring sufficient availability for domestic consumers.
As of Monday, the average all-India retail price of sugar was Rs 63 per kg, up from Rs 48.7 per kg a month ago. ISMA president Niraj Shirgaokar noted that the price increase is not due to an actual shortfall in supply. He pointed out that speculative trading has led to a misleading perception of scarcity, prompting bulk buyers to stockpile sugar, which has further tightened supply. Shirgaokar also mentioned that lower production estimates, adverse weather conditions, and pest issues have contributed to the price rise.
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