'No shortage of sugar in UP': CM Yogi Adityanath says state has 7-month supply

Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday said there was no shortage of sugar in the state. He said the state had 28 lakh tonnes of stock and another 90 lakh tonnes were expected from mills after they restart in October.

"There is talk of a sugar crisis, but there is no shortage of sugar in UP," Adityanath said in a public address.

Uttar Pradesh consumes about 4 lakh tonnes of sugar a month. With 28 lakh tonnes in stock, the state has about seven months of supply, the chief minister said.

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"Furthermore, as we will restart sugar mills on October 15, we will produce another 90 lakh tonnes, or 900 lakh quintals, of sugar through our mills," he added.

ISMA On Rising Prices

Niraj Shirgaokar, the president of the Indian Sugar Mills Association (ISMA), too, said on Monday that there was no shortage of sugar in the country. He said net sugar production for 2025-26 was estimated at around 279 lakh tonnes, with closing stocks projected at roughly 35 lakh tonnes.

"That is a healthy buffer against normal domestic demand, even after accounting for the sugar, which is diverted to ethanol," Shirgaokar said. "While retail prices have moved from around Rs 48 per kg in July to roughly Rs 55-56 per kg this month. A rise of about 16%. That increase is not driven by any actual shortfall in availability."

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Weather, Festivals, And Stocking

He attributed the price increase to several factors, including lower-than-expected domestic production because of weather-related effects, lower cane yields, and lower recovery.

"Domestic output for the season came in below the initial projections, revised to around 309 lakh tons, mainly due to the weather-related effects, lower cane yield, and lower recovery, including a higher crush rate in Maharashtra and red rot-related varietal issues in Uttar Pradesh. Festival season buying has also picked up as it does every year," Shirgaokar said.

Lower estimated sugar production in Brazil has also tightened global supplies. International prices rose from around $474 a tonne in June to about $552 a tonne in August, the ISMA President said.

But Shirgaokar said speculative buying had been the biggest contributor to the recent price rise. Some bulk buyers who would normally purchase sugar just in time have started stocking it one and a half to two months in advance, he said. That has pulled sugar out of circulation and into warehouses, creating what he described as "an artificial tightness" unrelated to actual availability.