The All-India Sugar Trade Association (AISTA) on Monday formally rejected reports of sugar shortages in India, according to a statement published on July 20, 2026. The clarification comes as ex-factory sugar prices have surged by approximately 15% in less than a month, prompting concern among buyers and end-users. AISTA urged its members to ensure steady availability of the commodity nationwide and to adopt practices similar to those used during the COVID-19 pandemic to keep supply chains open.
Price Movements and Market Data
Government data shows a steady increase in sugar prices across both retail and wholesale markets. The all-India average retail sugar price climbed to ₹47.9 per kg on July 17, up from ₹47.01/kg one month earlier, ₹46.48/kg three months prior, and ₹46.34/kg six months ago. In the wholesale market, prices rose to ₹4,447.57 per quintal on July 17, compared with ₹4,294.70/quintal six months prior.
| Metric | Value (July 17, 2026) | Change (6 months) |
|---|---|---|
| Retail price (₹/kg) | 47.9 | +₹1.56/kg |
| Wholesale price (₹/quintal) | 4,447.57 | +₹152.87/quintal |
The price increase has created an “unwarranted impression of a shortage”, according to AISTA Chairman Praful Vithalani, who requested stakeholders across the sugar value chain — mills, trade houses, wholesalers, distributors, and institutional consumers — to take “positive steps” to keep the sweetener readily available.
Supply-Side Intelligence
AISTA, in its communication to members, specifically referenced a joint statement issued last week by the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Co-operative Sugar Factories (NFCSF). That statement confirmed that the country holds adequate sugar stocks to meet domestic demand. Additionally, sugar millers have agreed to commence the 2026-27 season (October–September) at the earliest, depending on agro-climatic conditions.
AISTA CEO RP Bhagria expressed optimism about sugar availability in a separate letter to stakeholders. Bhagria said the trade body expects favourable weather — without excessive rainfall during the early harvest period — to allow cane cutting and crushing to proceed without interruption.
AISTA’s Call for Steady Supply
Drawing a parallel to the COVID-19 pandemic period, when supplies were maintained despite logistical challenges, Vithalani asked members to adopt a similar approach now. He advised them to keep the supply pipeline flowing smoothly and avoid practices that could clog it. Specific instructions included refraining from panic buying or speculative stocking, complying with government norms, and disregarding misleading information or rumours.
The trade body’s proactive stance underscores its commitment to preventing artificial scarcity. By coordinating with millers, traders, and distributors, AISTA aims to ensure that the price rise does not cascade into hoarding or supply disruptions.
Outlook and Monitoring
With the new sugar season set to begin in October, and weather conditions currently favourable, AISTA’s guidance provides a near-term anchor for market participants. The key data points to watch will be the progress of the monsoon in cane-growing regions and the timely start of crushing operations. Any deviation from normal rainfall could affect the harvest schedule, but for now, the trade body’s message is clear: India’s sugar supply is secure.
