Sugar prices surge in India; ethanol not to blame, says industry body

Sugar prices have experienced a marked surge across India, prompting industry stakeholders to reassess the causes behind the volatility. The Indian Sugar Manufacturers Association (ISMA) has pushed back against suggestions that ethanol production is the primary culprit, asserting that other significant factors are at play in driving up consumer costs.

Ethanol, a biofuel produced from sugarcane, has frequently been cited as a competing demand factor that diverts raw material away from sugar production and affects overall supply dynamics. However, ISMA's position indicates that the current price increases cannot be primarily attributed to the ethanol sector's demands.

The association's statement suggests that the root causes of sugar price inflation lie elsewhere in the supply chain and market structure. Industry analysts point to various potential contributors, including global market conditions, domestic production challenges, export dynamics, and broader agricultural and economic factors affecting the sector.

The clarification from ISMA comes as consumers continue to face elevated sugar prices at retail outlets. The industry body's assessment may inform policy discussions around sugar availability and pricing in the coming weeks, as officials seek to address affordability concerns while maintaining sector viability.