Uttar Pradesh Chief Minister Yogi Adityanath has moved to reassure residents, confirming on Tuesday that the state faces no sugar shortage. Adityanath stated that Uttar Pradesh currently possesses a substantial stock of 28 lakh tonnes of sugar, enough to meet the state's monthly consumption of approximately 4 lakh tonnes for seven months.
Addressing public concerns, the Chief Minister highlighted future supply, noting that sugar mills are scheduled to resume operations on October 15. This restart is anticipated to produce an additional 90 lakh tonnes of sugar, further bolstering the state's reserves.
National Supply and Price Trends
Echoing the Chief Minister's sentiments, Niraj Shirgaokar, President of the Indian Sugar Mills Association (ISMA), also affirmed that there is no national sugar shortage. Shirgaokar estimated India's net sugar production for 2025-26 at around 279 lakh tonnes, projecting healthy closing stocks of approximately 35 lakh tonnes. This buffer is considered sufficient to meet domestic demand, even after accounting for sugar diverted to ethanol production.
Despite adequate supply, retail sugar prices have seen an increase, rising from around Rs 48 per kg in July to Rs 55-56 per kg in August, a jump of about 16%. Shirgaokar clarified that this price hike is not driven by an actual shortfall in availability.
Factors Behind Price Increases
The ISMA President attributed the recent price surge to a combination of factors:
- Weather-Related Effects: Lower-than-expected domestic production due to adverse weather, reduced cane yields, and lower recovery rates, particularly in Maharashtra and Uttar Pradesh.
- Festival Season Buying: Increased demand during the festive period, a typical annual trend.
- Global Market Tightness: Lower estimated sugar production in Brazil has contributed to tighter global supplies, causing international prices to rise from $474 a tonne in June to $552 a tonne in August.
- Speculative Buying: Shirgaokar identified speculative purchases by bulk buyers as the most significant contributor. These buyers have begun stocking sugar one to two months in advance, creating an artificial tightness in the market by pulling sugar out of immediate circulation and into warehouses.
Adityanath's assurance, combined with ISMA's national outlook, aims to calm market anxieties and consumer concerns regarding sugar availability in the region and across the country.