Sugar Market Likely to Remain Complex Next Year

New Delhi. Much like the previous two seasons, sugar production in the current 2026-27 marketing season is expected to fall short of domestic demand and consumption. Consequently, the situation regarding supply and availability is likely to remain complex throughout 2027.

The Ministry of Food is aware of this reality and has, therefore, directed all sugar mills to submit monthly production data to the government. This will enable the formulation of an appropriate strategy and, if necessary, facilitate timely decisions regarding the import of sugar from abroad.

Previously, the domestic industry held substantial carry-over stocks, which prevented any supply crisis despite shortfalls in production. However, the situation has now changed. While stocks were available for the 2026-27 season, a record 'free-sale' quota of 3 million tonnes (30 lakh tonnes) was released for the month of October.

The quota for November is expected to be announced either today or tomorrow. By October 25, domestic sugar production reached approximately 400,000 tonnes (4 lakh tonnes), while limited quantities of raw sugar are being imported. The festive season has not yet concluded. Overall, the sugar market is likely to remain complex.