Sugar Price Spike: Panic Buying, Not Shortage, Says ISMA!

Sweet relief for Indian households! The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) announced on Monday that the recent surge in sugar prices is likely to ease soon. The industry body firmly stated that there is no actual shortage of sugar in the country, attributing the price spike primarily to panic and speculative buying.

Recent government data highlighted the concern, showing the average all-India retail price of sugar at ₹63.05 per kg on August 24, a significant 29 per cent jump from ₹48.73 per kg just a month prior. The maximum retail price even touched ₹75 per kg.

This surge had led to widespread worries among consumers and traders alike.

Hover, ISMA Director General Deepak Ballani reassured the public, explaining that market sentiment and stockpiling were the main drivers behind the inflated prices. He indicated that ex-mill rates have already started showing signs of moderation, signaling a potential return to normal for retail prices.

Adding to the reassurance, Uttar Pradesh Chief Minister Yogi Adityanath confirmed that his state alone has a substantial seven-month supply of sugar, with 28 lakh tonnes in stock against a monthly consumption of about 4 lakh tonnes. This further reinforces ISMA's claim that the supply chain is robust and capable of meeting demand.

Consumers can look forward to more stable and potentially lower sugar prices in the near future as market anxieties subside.

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