Decline in sugar production; quota also reduced
01-May-2026 10:18 AM
Decline in sugar production; quota also reduced
★ According to ISMA, sugar production this year is expected to decline by 7% to 275.28 lakh tonnes by April 30. This figure is after accounting for ethanol diversion.
★ A sales quota of 113 lakh tonnes has been allocated for January to May, which is 2 lakh tonnes higher than the same period last year.
★ Typically, sugar consumption increases in May due to rising temperatures.
★ On one hand, production is lower as per estimates, while on the other hand, a limited sales quota is supporting expectations of higher sugar prices.
★ In fact, due to the lower quota, the market has already moved to higher levels.
★ Sugar prices are expected to remain firm in the future.
★ Keep an eye on El Niño. If rainfall decreases, it may directly impact sugarcane yield and thus sugar production. Additionally, fertilizer shortages could further affect the situation.