Limited fluctuations in sugar due to balance in demand and supply

12-Sep-2025 08:00 PM

Mumbai. Sugar prices have remained almost stable for the last few days with limited fluctuations as there is a great balance between its demand and supply.

At the beginning of the current week, the market had risen by Rs 50-60 per quintal, but the business came to a standstill at higher prices.

A quota of 23.50 lakh tonnes of sugar has been issued for domestic sales for September, which is considered sufficient to meet the demand.

This quota is one lakh tonnes more than August and equal to September 2024. Buyers (bulk) are waiting for the price of sugar to soften, while millers are not in the mood to reduce the price.

The new season of crushing sugarcane and sugar production is going to start from next month. After assessing the situation, ISMA has estimated the gross domestic production of sugar to be 349 lakh tonnes for the 2025-26 season (October-September). The initial estimate of production of the same amount of sugar was made on 31 July.

How much of this sugar will be used for ethanol production will be known later. The area under sugarcane cultivation has increased in Maharashtra and Karnataka and the condition of the crop is also said to be satisfactory,

due to which the average yield rate of sugarcane and the average recovery rate of sugar from sugarcane is expected to increase. There is news of some reduction in the area under sugarcane in Uttar Pradesh, but there is no significant infestation of insects and diseases on the crop.

Everyone agrees on the possibility of increase in production of sugarcane and sugar during the 2025-26 season as compared to 2024-25. Everyone's attention is focused on the September rainfall.

If the situation remains normal or favorable, the next production may be better. The industry will have very little previous stock of sugar left, so it is necessary to increase production in the next season.