Now Reading: ISMA blames speculation for sugar price surge, seeks lower stock limit
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ISMA blames speculation for sugar price surge, seeks lower stock limit
ISMA blames speculation for sugar price surge, seeks lower stock limit
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said on Monday that no shortage of sugar exists and blamed speculative buying and stockpiling by bulk consumers for a 29% price jump in…
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said on Monday that no shortage of sugar exists and blamed speculative buying and stockpiling by bulk consumers for a 29% price jump in a month. The all-India average retail price reached Rs 63.05 a kg on August 24, up from Rs 48.73 a month earlier. ISMA President Niraj Shirgaokar told reporters in New Delhi that traders created a misleading impression of tightness, prompting large buyers to stock 1.5-2 months of supply ahead of the festive season.
The Hindu reports that the government allowed duty-free import of 10 lakh tonnes of raw sugar and tightened stockholding limits to cool prices. ISMA has demanded the stock limit on traders be cut from 400 tonnes to 200 tonnes. The association dismissed diversion of sugar to ethanol as a cause, saying only 2.9 million tonnes went to ethanol this year. Sugar mill sources say imported sugar, likely from Brazil, will reach Indian ports only by mid-October.
India's net sugar production for 2025-26 is estimated at 279 lakh tonnes against domestic consumption of 280-285 lakh tonnes. ISMA projects a closing stock of 35 lakh tonnes by end-September. Millers said ex-mill prices have eased to Rs 55-56 per kg in Maharashtra and Uttar Pradesh in recent days.
Indian Opinion Analysis
The three outlets all carry the same core ISMA message blaming speculation, but The Hindu Business Line is the only one to note that the industry's own statistics indicate a shortage and that the government allowed imports on that recognition. Times of India and The Hindu report ISMA's denial of an actual shortfall without challenging it. Business Line's framing puts the government's import decision as a response to shortage, not just volatility. The ISMA president's projection of 1-1.2 million tonnes output in October, historically never above 0.5 million tonnes, is a number to watch when the new season starts around October 15.
Coverage: 3 sources, 3 neutral
Sources (3): thehindu.com (neutral report), timesofindia.indiatimes.com (neutral report), thehindubusinessline.com (neutral report)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
