The government has predicted that the sugar stock in India at the end of August will be around 46 lakh tonnes. However, this is lower than what the Indian Sugar and Bio-energy Manufacturers Association (ISMA) predicted the closing stock to be, about 52 lakh tonnes. The govt. has allowed 23.5 lakh tonnes of sugar for domestic sales. Since festivals like Dussehra and Diwali are coming earlier this year, demand for sugar will be high, and this entire quota may be utilised completely.
Why are sugar stocks significant?
In 2024, the government had allocated 47.5 lakh tonnes of sugar for domestic sales during October-November. Experts said that if the allocation is maintained at the same level, the closing stock will be lower, indicating the government may have to rely on new sugar production from the next season, which begins October 1. Not only this, but the sugar industry is also optimistic about better production this time due to a good sugarcane crop and higher juice recovery.
What does the ISMA estimate?
The ISMA released the first sugar production estimate for the 2025-26 season and stated that the domestic availability was sufficient to meet festival demand when fresh production would start arriving from November, along with carry-forward stock of 52 lt.
ISMA has projected the country’s gross sugar output to be 349.01 lt in the 2025-26 season, an increase of 18 per cent from 295.07 lakh tonnes in the 2024-25 season.