India's sugar market faces price surge amid low stocks and industry call to curb panic buying

Indian sugar industry bodies—the Indian Sugar & Bio‑energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd (NFCSF)—issued a joint statement saying the country has comfortable sugar inventories and urging institutional buyers, wholesalers and retailers to avoid speculative or panic purchases. They noted the government’s export ban through 30 September and projected total production of 29.3 million tonnes for the 2025‑26 season after a reduction in ethanol diversion.

Meanwhile, traders and analysts warned that weak monsoon rains and limited carry‑over stocks (estimated at 1‑1.5 million tonnes against monthly consumption of 2.2‑2.5 million tonnes) could push ex‑mill prices above Rs 50 per kg for the first time. Prices in Uttar Pradesh have risen to Rs 4,400‑4,500 per quintal, with wholesale rates in Delhi reaching Rs 4,750‑4,850 per quintal. Further increases could see wholesale prices hit Rs 55 per kg, marking an all‑time high.