Sugar associations appeal to institutional buyers, traders to avoid panic buying

New Delhi, Jul 17 (PTI) Sugar industry bodies ISMA and NFCSF on Friday asserted that there is adequate stock of sweetener in the country and asked institutional buyers as well as wholesale and retail traders to refrain from "speculative buying" amid the recent price rise. In a joint statement, Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd (NFCSF) assured all stakeholders that "India's sugar availability remains comfortable and the country has adequate sugar stocks to comfortably meet domestic consumption requirements." There is no justification for panic buying or speculative trading in the domestic sugar market, they added. The all-India daily average wholesale price of sugar has increased to Rs 4,457.57 per quintal on Friday from Rs 4,354.37 per quintal a month ago, according to the data compiled by the Department of Consumer Affairs. Meanwhile, the all-India daily average retail price of sugar has increased to Rs 47.9 per kg on Friday from Rs 47 per kg a month back, as per the data. "The industry firmly believes that the recent price movement is not supported by the underlying demand-supply fundamentals. Creating an impression of scarcity when sufficient stocks are available can lead to unnecessary market volatility, disrupt normal trade, and adversely affect consumers as well as downstream industries," the joint statement said. ISMA and NFCSF asked all stakeholders -- including traders, wholesalers, institutional buyers, retailers and market participants -- to refrain from speculative buying, hoarding, or spreading misleading information regarding sugar availability. "Such actions only create artificial uncertainty and are against the larger interest of consumers, farmers, and the industry," they argued. The two associations said they are fully committed to ensure continuous and adequate supplies of sugar, timely availability across all regions, and maintaining market stability. In May, India banned the export of sugar till September 30 this year with immediate effect, a move aimed to enhance domestic availability and contain prices. The government has allowed exports of nearly 16 lakh tonnes of sugar for the 2025-26 marketing year ending September. ISMA has projected total production for the 2025-26 marketing season at 29.3 million tonnes after ethanol diversion, up from 26.12 million tonnes recorded in 2024-25. PTI MJH DRR