The gross sugar production for SY2026 is projected to increase by 5.03% to 31.10 million MT (PY 29.6 million MT). Net sugar production, after an estimated diversion of 3.1 million MT towards ethanol production, is likely to remain at 28 million MT. Considering the domestic consumption of 28.3million MT and export of0.7million MT(already done), the closing sugar stock level is expected to remain around4.3million MT (PY 5.3 million )by September 2026, which is about two months of consumption, indicating slightly lower sugar inventory levels compared to the previous years. Further, the SY2027 season is expected to be impacted by El Nino which may result in lower sugar production.

Source: ISMA, ICRA Research; SY: sugar year (from October 01 to September 30)