The recent allowance of duty-free sugar imports of one million MT is expected to ease supply pressures arising from lower inventory levels amid an anticipated increase in sugar demand ahead of the festive season. The imports should help improve near term sugar availability and are expected to lead to some correction in domestic sugar prices before the commencement of the next crushing season.

• Demand-supply balance estimates – Gross sugar production in SY2026 is projected to increase by 3% to 30.6 million MT (previous year [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 27.5 million MT.
• Production – In SY2026, sugar production stood at 27.53 million MT till April 30, 2026, compared to 25.65 million MT during the same period last year, marking a YoY increase of 7%.