Sugar prices to ease within 7 days; ethanol not behind rise: ISMA

ISMA said India does not face a shortage of sugar and that the current stock position remains comfortable.India's sugar prices rise despite record sugarcane output. (Photo: ITG)Sugar prices may start coming down within the next seven days, the Indian Sugar Mills Association (ISMA) said, as it sought to ease concerns over the recent rise in prices.ISMA said India does not face a shortage of sugar and that the current stock position remains comfortable. It said the recent price rise is largely linked to market sentiment, higher festive demand and buying behaviour rather than an actual supply shortage.ETHANOL NOT BEHIND PRICE RISEISMA said ethanol should not be blamed for the current sugar price crisis. According to the association, sugar prices have risen from around Rs 42 to Rs 55, an increase of about 16%, but this cannot be linked to a shortage of sugar.It said weather conditions have affected sugarcane yields, while higher crushing rates in Maharashtra and variety-related issues in Uttar Pradesh have also influenced the market. FESTIVE DEMAND, BULK BUYING PUSH PRICESISMA President Niraj Shirgaonkar said demand has picked up with the festive season. Supply conditions in Brazil have also added pressure to the market.However, he said speculation is the biggest factor behind the recent price movement. Bulk buyers have started stocking sugar, taking supplies out of regular circulation and creating what ISMA described as an artificial shortage. The association expects the market sentiment to improve soon, with prices likely to begin easing within the next seven days.ISMA also said the opening stock of sugar for the next year is expected to be around 35 lakh tonnes, indicating that supplies remain at a comfortable level.- EndsPublished By: Jasmine anandPublished On: Aug 24, 2026 16:32 IST