Sugar prices set to ease? ISMA says panic buying caused spike, no actual shortage in India
Government data showed that the average all-India retail price of sugar stood at ₹63.05 per kg on August 24, up around 29 per cent from ₹48.73 per kg a month earlier. The maximum retail price was ₹75 per kg, while the model price was around ₹65 per kg
- Aug 25, 2026,
- Updated Aug 25, 2026 11:48 AM IST
Sugar prices in India are likely to soften in the coming days as panic and speculative buying ease, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said on Monday. The industry body maintained that there is no actual shortage of sugar in the country and that the recent spike in prices has largely been driven by market sentiment and stockpiling.
Speaking to ANI on the sidelines of an ISMA press conference, ISMA Director General Deepak Ballani said the industry expects prices to rationalise as ex-mill rates have already started showing signs of moderation.
“We are hoping that the prices will go down because we have seen today that there is a trend that the ex-mill prices have started going down. So we are hoping that the effect of this will also come on the retail prices and the prices will rationalise,” Ballani told ANI.
READ THIS: Sugar stocks extend gains: What’s driving the rally?
Panic buying behind recent price rise
According to Ballani, the sharp increase in sugar prices over the past 20 days was not caused by a physical shortage. Instead, speculative purchases and panic buying by traders and bulk consumers contributed significantly to the rise.
“This price rise in the last 20 days is because of the speculative buying, the panic buying; there are absolutely no problems of the physical sugar availability in the country,” he said, according to ANI.
Ballani added that market participants had developed a perception of possible supply tightness, prompting buyers to stock up in advance.
“There was a perception given that there could be some tightness, which led to panic buying, speculative buying...which I believe was unfounded,” he said.
ISMA says stocks remain comfortable
ISMA President Niraj Shirgaokar said India is expected to end the current sugar season with around 35 lakh tonnes of closing stock, which he described as a comfortable level for domestic requirements.
DON'T MISS: “Sugar Supply Is A Concern”: Pralhad Joshi On Prices, Imports And Festival Demand
The association has also called for reducing the stockholding limit for traders from 400 tonnes to 200 tonnes. Shirgaokar told ANI that such a move could encourage more sugar to reach the retail market and help consumers see a correction in prices during the festive season.
“We have asked them to reduce the limit from 400 tonnes to 200 tonnes so that the most sugar is released into the market and into the retail and then the consumer sees the actual correction in the price during the festival season,” Shirgaokar said.
Duty-free imports to support supply
The government has approved duty-free imports of 10 lakh tonnes (1 million tonnes) of raw sugar as a precautionary measure to ensure adequate domestic availability. ISMA said the move should help ease market sentiment and reduce speculative pressure on prices.
The association also expects sugar mills to begin the new crushing season earlier than usual. Early crushing and additional domestic production are expected to strengthen supplies ahead of the festive season.
ALSO READ: Tehseen Poonawalla detained at home ahead of E20 protest, offers sugarcane juice to cops
ISMA Vice President Madhav B Shriram said the combination of existing stocks, fresh domestic production and calibrated releases should help ease pressure on prices as festive buying normalises.
Sugar prices had surged sharply
Government data showed that the average all-India retail price of sugar stood at ₹63.05 per kg on August 24, up around 29 per cent from ₹48.73 per kg a month earlier. The maximum retail price was ₹75 per kg, while the model price was around ₹65 per kg.
Sugar prices in India are likely to soften in the coming days as panic and speculative buying ease, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said on Monday. The industry body maintained that there is no actual shortage of sugar in the country and that the recent spike in prices has largely been driven by market sentiment and stockpiling.
Speaking to ANI on the sidelines of an ISMA press conference, ISMA Director General Deepak Ballani said the industry expects prices to rationalise as ex-mill rates have already started showing signs of moderation.
“We are hoping that the prices will go down because we have seen today that there is a trend that the ex-mill prices have started going down. So we are hoping that the effect of this will also come on the retail prices and the prices will rationalise,” Ballani told ANI.
READ THIS: Sugar stocks extend gains: What’s driving the rally?
Panic buying behind recent price rise
According to Ballani, the sharp increase in sugar prices over the past 20 days was not caused by a physical shortage. Instead, speculative purchases and panic buying by traders and bulk consumers contributed significantly to the rise.
“This price rise in the last 20 days is because of the speculative buying, the panic buying; there are absolutely no problems of the physical sugar availability in the country,” he said, according to ANI.
Ballani added that market participants had developed a perception of possible supply tightness, prompting buyers to stock up in advance.
“There was a perception given that there could be some tightness, which led to panic buying, speculative buying...which I believe was unfounded,” he said.
ISMA says stocks remain comfortable
ISMA President Niraj Shirgaokar said India is expected to end the current sugar season with around 35 lakh tonnes of closing stock, which he described as a comfortable level for domestic requirements.
DON'T MISS: “Sugar Supply Is A Concern”: Pralhad Joshi On Prices, Imports And Festival Demand
The association has also called for reducing the stockholding limit for traders from 400 tonnes to 200 tonnes. Shirgaokar told ANI that such a move could encourage more sugar to reach the retail market and help consumers see a correction in prices during the festive season.
“We have asked them to reduce the limit from 400 tonnes to 200 tonnes so that the most sugar is released into the market and into the retail and then the consumer sees the actual correction in the price during the festival season,” Shirgaokar said.
Duty-free imports to support supply
The government has approved duty-free imports of 10 lakh tonnes (1 million tonnes) of raw sugar as a precautionary measure to ensure adequate domestic availability. ISMA said the move should help ease market sentiment and reduce speculative pressure on prices.
The association also expects sugar mills to begin the new crushing season earlier than usual. Early crushing and additional domestic production are expected to strengthen supplies ahead of the festive season.
ALSO READ: Tehseen Poonawalla detained at home ahead of E20 protest, offers sugarcane juice to cops
ISMA Vice President Madhav B Shriram said the combination of existing stocks, fresh domestic production and calibrated releases should help ease pressure on prices as festive buying normalises.
Sugar prices had surged sharply
Government data showed that the average all-India retail price of sugar stood at ₹63.05 per kg on August 24, up around 29 per cent from ₹48.73 per kg a month earlier. The maximum retail price was ₹75 per kg, while the model price was around ₹65 per kg.