There is no need for panic over the recent rise in sugar prices as domestic availability remains comfortable and supplies are expected to improve further with imports and the arrival of the new sugar season ahead of Diwali, Ravi Gupta, Executive Director of Shree Renuka Sugars Ltd, said on Wednesday.
Speaking to ANI on the sidelines of an event organised by the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), Gupta said sugar prices had already corrected sharply in recent days. He noted that commodity markets can move sharply in both directions and said sugar prices had declined by around 25% from their recent highs. According to him, the industry has adequate sugar stocks in the market, while the imports announced by the government will provide additional support to domestic supplies.
Gupta said the government is also working to facilitate an early start to the upcoming sugar season. If weather and other conditions remain favourable, fresh sugar could start reaching the market from around October 15. The arrival of new-season sugar in about one-and-a-half months, combined with the announced imports, is expected to ensure adequate availability during the festive period.
Diwali is expected to be celebrated in the first half of November, while the new sugar marketing season generally begins around the middle of October. With fresh production expected before the festival and additional supplies from imports, Gupta said there should be no major concern over sugar availability during Diwali. Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu and Bihar remain among India’s major sugarcane-producing states and will play an important role in the new season’s production.
The government has announced the import of 1 million tonnes of sugar under the Tariff Rate Quota (TRQ). Gupta said these imports would further supplement domestic availability and help maintain a balance in the market during the transition between the current and new sugar seasons.
Addressing concerns that diversion of sugarcane towards ethanol production could be contributing to the recent rise in sugar prices, Gupta rejected the argument that ethanol should be blamed for the market movement. He explained that sugarcane sucrose can be utilised for different purposes, including food sugar, ethanol production and exports, and that the industry continuously balances these uses depending on market conditions.
Gupta also highlighted the increasing efficiency and diversification of the sugar industry in recent years. The sector has expanded beyond conventional sugar production through activities such as ethanol and compressed biogas (CBG), strengthening the overall business model of sugar mills. He added that significant progress has also been made in clearing sugarcane arrears, with farmers receiving payments more promptly in many parts of the industry.
Looking ahead, Gupta identified improving sugarcane productivity as one of the key priorities for the industry. He said India needs to produce more sugarcane from the existing cultivated area rather than relying on expansion of farmland. Developing healthier and stronger cane varieties that can withstand pests, diseases and other crop-related challenges will be important for improving productivity and ensuring sustainable supplies.
He further stressed the need for continued value addition and diversification across the sugar industry. With ethanol, CBG and other bio-energy opportunities expanding alongside traditional sugar production, the industry is increasingly looking to diversify its revenue streams and strengthen its long-term sustainability.
