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Business Desk – India Sugar Shortage Story: India is called an agricultural country and the country is ahead in the world in the production of many agricultural products like milk, pulses and spices. But if we talk about sugar production, India is at second place. Brazil produces the most sugar in the world. After this is India.

At present, there is a rise in the prices of sugar in India as well as in the global market. There has been an increase of about 20% in sugar prices in the country this month alone. In such a situation, the biggest question is why are the prices of sugar increasing and can it have further impact on the common people in the coming festivals?

Brazil is the largest sugar producer, India at second place.

Brazil ranks first in terms of sugar production in the world. Brazil's share in the total sugar produced in the world is about 23.5%. After this, India comes second with about 16.1% share. After this, the combined share of European Union is about 8.3%, China's 6.8%, Thailand's 6.1%, America's 4.5% and Pakistan's about 3.8%. That means India has a large share in the world's sugar production, but Brazil's production and export also have a significant impact on prices in the global market.

Nearly 20% jump in sugar prices in the country

Sugar prices in India have increased by about 20% this month. Sugar price is also different in different states. The price of sugar in Karnataka is said to be around Rs 49.96 per kg, in Maharashtra it is around Rs 51.43 per kg and in Uttar Pradesh it is around Rs 52.29 per kg. This rise in prices may further impact the prices of sweets and other food products, especially when the demand for sugar increases during festivals.

Is the price of sugar increasing because of ethanol?

Amidst the increase in the price of sugar, the question is also being raised whether Ethanol production is the reason for it. However, government and industry experts say that the current rise is not directly to ethanol.

This question arose because till a few years ago, sugar production in the country was more than domestic consumption. But in the financial year 2024-25, about 261 lakh metric tonnes of sugar was produced in the country, while the domestic consumption was about 281 lakh metric tonnes. This data shows that consumption was more than production during that period.

There is no shortage of sugar in the country

Despite the rise in sugar prices, the Sugar Industry says that there is no major shortage of sugar in the country. There has also been no such decline in production, which would create a situation of supply crisis in the country. In such a situation, to understand the current boom, not only production but also factors like Demand, Supply, Stock and Global Market will have to be looked at.

Sugar demand may increase due to festivals

The biggest concern regarding sugar prices is regarding the upcoming festive season. After Rakshabandhan, big festivals like Janmashtami, Ganesh Chaturthi, Navratri, Dussehra and Diwali are coming. The demand for sweets, bakery and other food products increases during these festivals. This also increases sugar consumption. In such a situation, if there is a sudden surge in demand, there may be further pressure on prices. This is the reason why the concern of the common people as well as the sweet traders is increasing regarding the rising sugar prices.

What will happen next?

At present it is being said that there is no shortage of sugar in the country, but it will be necessary to keep an eye on the Demand-Supply Balance. On one hand, there is a possibility of increase in domestic demand due to festivals, while on the other hand, prices remain high in the Global Sugar Market.

If demand increases rapidly and supply does not increase in the same proportion, then sugar prices may go up further during festivals. This may have a direct impact on the prices of sweets and other sugar-based products.