Domestic Sugar Prices Expected to Remain Firm

26-Mar-2026 12:09 PM

Mumbai: Although domestic sugar production during the current 2025–26 marketing season is expected to increase compared to the 2024–25 season, the stock situation may still remain tight, which could keep prices firm. The government has already permitted the export of 2 million tonnes of sugar.

During the current season, sugar production is likely to remain lower than earlier expectations. Clear indications of this are emerging. At the beginning of the season, the carryover stock available for use was less than 5 million tonnes, whereas it is usually around 6 million tonnes. Considering the demand–supply balance, it appears that closing stocks by the end of the current season could fall even further. The government has indirectly allowed limited use of sugar (cane juice/sugar) for ethanol production.

Gross sugar production this season is estimated at around 32.5 million tonnes. Out of this, about 3 million tonnes may be used for ethanol production, leaving approximately 29.5 million tonnes available for food consumption. However, some analysts believe that actual production could be lower than this estimate. As a result, the overall demand–supply balance may remain tight, which could support stronger prices.