India's Sugar Demand Drizzles Amid LPG Shortage and Rains

India is witnessing a decline in sugar demand, with a projected reduction of 4 lakh tonnes during March-April, according to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA). The downturn is attributed to a shortfall in commercial LPG supply and unseasonal rainfall affecting demand in various parts of the nation.

The total domestic sugar demand for the 2025-26 marketing year is estimated at 281 lakh tonnes. However, a decrease is noted due to these supply chain challenges, potentially bringing annual demand down to 277 lakh tonnes, ISMA's Director General Deepak Ballani reported. The demand is expected to shrink further as sugar consumption spikes in the summer months due to beverage intake.

ISMA anticipates export figures between 7.5-8 lakh tonnes for the marketing year, significantly below the food ministry's permitted export cap of 16 lakh tonnes. Meanwhile, domestic production remains robust at an estimated 285 lakh tonnes, despite a diversion of sugar for ethanol production. The industry's call for an increased minimum selling price and higher ethanol blending in fuel persists.