Sugar prices expected to remain stable amid festival season demand: ISMA DG Deepak Ballani

As India enters the festive season, sugar prices are expected to remain stable, said Deepak Ballani, Director General of the Indian Sugar Mills Association (ISMA). Despite increased demand during festivals like Diwali, Ballani does not foresee any significant upward movement in retail sugar prices in the near term.

Ballani highlighted that sugar consumption this year has been lower compared to the previous year. “If you see the trend for the entire year, sugar consumption seems quite on the lower side compared with last year,” he said, citing current figures which suggest that consumption will close at around 279 to 280 lakh tonnes by the end of September.

Current ex-mill prices are steady, with rates in Uttar Pradesh hovering around ₹40 to ₹40.5 per kg and Maharashtra at ₹38 to ₹39. The cost of production is roughly ₹40, while retail prices are currently about ₹45.9 per kg — comparatively low amid rising inflation in other commodity prices.

“Going forward, looking at the demand and the festivals, I don’t see retail prices going up,” Ballani stated. He added that India’s sugar stock is sufficient, with an expected carryover of 52 to 53 lakh tonnes at season end, which supports price stability.

On broader consumption trends, Ballani addressed the U.S. Department of Agriculture (USDA) report projecting a 2% growth in India’s sugar consumption to nearly 30 million tonnes. While acknowledging a temporary dip last year due to election disruptions and cross-border leakages, he said, “I don’t believe our sugar consumption is actually going down.”

He explained that although metro cities may be seeing moderation due to increased health consciousness, consumption growth continues in tier two and rural areas driven by expanding packaged food markets. “Sugar will still continue to grow at the rate of around 1.5-2% going forward,” Ballani said.

Watch accompanying video for entire conversation.

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