News Capsule: Sugar Situation in India
04-Feb-2026 11:07 AM
News Capsule: Sugar Situation in India
★ India’s sugar stock has fallen 11% year-on-year despite higher production. According to the Food Ministry, sugar inventories stood at 74.49 lakh tonnes as of Jan 31, 2026, compared with 84.61 lakh tonnes a year earlier. This decline came even as production during October–January rose 17% and consumption fell 4%.
★ Cash flows of sugar mills are unlikely to improve as neither the minimum selling price of sugar has been raised nor any additional ethanol quota has been allotted. The government has allowed sugar exports of only 15 lakh tonnes this season, higher than 10 lakh tonnes last year, of which around 3 lakh tonnes deals have been concluded so far.
★ Domestic sugar sales during October 2025 to February 2026 are expected to decline 3.5% to 110.5 lakh tonnes from 114.5 lakh tonnes in the year-ago period.
★ According to the Indian Sugar & Bio-Energy Manufacturers Association Indian Sugar & Bio-Energy Manufacturers Association, sugar consumption in India may grow at a CAGR of 1.5–2% between 2024-25 and 2029-30, led mainly by industrial demand.
★ Sugar production in the 2025-26 season reached 193.05 lakh tonnes as of Jan 31, up from 165.3 lakh tonnes a year earlier. Output has increased in Maharashtra, Uttar Pradesh and Karnataka, though Uttar Pradesh saw a marginal decline in January.
★ While lower sales quotas have supported sugar prices in the short term, the rise is unlikely to be sustained amid increasing production.