Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has said that India’s sugar demand is expected to decline by 4 lakh tonnes during the March-April period, mainly because of short supply of commercial LPG and rainfall in some parts of the country. ISMA Director General Deepak Ballani has said the total domestic demand of sugar is estimated at 281 lakh tonnes in the 2025-26 marketing year (October- September).

He said that the total demand for the first five months of this marketing year rose by 60,000 tonnes compared to the corresponding period of 2024-25. He noted ‘The dispatch of sugar from mills last month declined by around 2 lakh tonnes mainly because of supply issues in commercial LPG.’ Moreover, he said demand is likely to drop by 2 lakh tonnes even during this month because of rainfall in many parts of the country, as well as the LPG issue. 

Further, he stated the total demand in this marketing year is expected to decline to at least 277 lakh tonnes from an estimated 281 lakh tonnes, leading to higher closing stock of sugar at the end of September. On exports, he said country is expected to ship 7.5-8 lakh tonnes of sugar in the 2025-26 marketing year, lower than the nearly 16 lakh tonnes permitted by the food ministry. Besides, he noted that total production is expected to reach approximately 285 lakh tonnes after diversion of 35 lakh tonnes for ethanol making.