Sugar Market – Under Pressure
27-Mar-2026 11:05 AM
Sugar Market – Under Pressure
★ The monthly sugar quota for April 2026 has been fixed at 23 lakh tons, compared to 23.5 lakh tons in April 2025 and 25 lakh tons in April 2024.
★ For the January–April period, the total quota for 2026 is about 1.5 lakh tons lower than last year and nearly 3.5 lakh tons lower than in 2024.
★ The market is currently showing a contrasting situation—production has increased, but demand remains weaker than expected. One of the key reasons for subdued demand is lower offtake from the HORECA sector (hotels, restaurants, catering) and the sweets industry, partly due to high LPG costs.
★ At the same time, there is a lack of clarity regarding the ethanol policy, which is adding to market uncertainty. Weather has also played a role this season, with cooler temperatures reducing consumption of cold beverages and ice cream.
★ On the global front, price volatility and a weakening rupee are further influencing the market.
★ Considering all these factors, it is difficult to predict the direction of the market at this stage. Overall, the sugar market remains under pressure.
★ The lack of support from exports and ethanol is also impacting sugarcane payment cycles, putting pressure on cane dues to farmers.