Stocking, speculation behind ‘unnatural’ sugar price surge: ISMA
The Indian Sugar Mills Association (ISMA) claims that recent sugar price spikes are caused by speculative hoarding by bulk consumers rather than actual supply shortages. The industry body maintains that production levels are sufficient and expects prices to stabilize soon.
Why it matters
Understanding the drivers of food inflation is critical for economic policy and consumer welfare in India.
NEW DELHI: Sugar industry’s apex body ISMA on Monday said that there is no shortage of the sweetener while admitting that the spike in prices is “not natural” and is being fuelled by stocking by bulk consumers and “speculative behaviour”. The industry body said they want “rationalisation” of retail prices and are hopeful of a reduction in the coming days following multiple steps that govt has taken.The industry also dismissed allegations of diversion of sugar for ethanol production as a reason for tight supply of the sweetener and increasing prices. It said only 290 crore litres out of a total 1,200 crore litre of ethanol came from sugar during this ethanol supply year (Oct 2025- Sept 2026).
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