Indian sugar prices reach record peak as supply shortage looms

The rally, fueled by anticipation of Ganesh Chaturthi, Dussehra, and Diwali, is expected to persist for at least three months. Ashok Jain, president of the Bombay Sugar Merchants Association, noted that mills are intentionally withholding stocks, betting on further price hikes. This strategy comes as national sugar inventories at the start of the October season are projected to hit 3.5 million tons, the lowest level in over thirty years.

While consumers face higher costs, the market shift benefits producers like Balrampur Chini, Dwarikesh Sugar, Shree Renuka Sugars, and Dalmia Bharat Sugar. Bulk buyers, including major confectionery and soft drink companies, are currently stockpiling reserves to bypass potential shortages during the peak consumption window. Supply relief remains unlikely until November, when mills begin crushing the new-season crop, leaving the market vulnerable to the current production deficit for the remainder of the year.