Daijiworld Media Network - New Delhi

New Delhi, Apr 7: India’s sugar consumption is projected to decline by nearly 400,000 tonnes to 27.7 million tonnes in the 2025-26 season, largely due to reduced demand triggered by the West Asia conflict and an LPG shortage, industry officials said.

Deepak Ballani, Director General of the Indian Sugar and Bio-energy Manufacturers Association, said that while sugar despatches between October 2025 and February 2026 were higher by around 60,000 tonnes compared to the same period last year, demand weakened sharply in March as the geopolitical situation escalated.

Consumption had stood at around 28.1 million tonnes in the 2024-25 season.

Speaking at the ‘ISMA Sugar NXT 2026’ conference, Food Secretary Sanjeev Chopra ruled out any proposal to ban sugar exports to boost domestic supply. He said the government is, however, considering the industry’s demand to raise the minimum selling price of sugar.

Chopra noted that while the government has approved exports of about 1.5 million tonnes, fulfilling the entire quota may be challenging due to pricing parity issues in global markets. He added that recent developments in West Asia have led to some improvement in international sugar prices.

“If exports do not materialise, the surplus will remain as closing stock, allowing the industry to divert more sugar towards the ethanol blending programme,” he said.

The Food Secretary also said domestic sugar prices have remained stable and are unlikely to rise due to adequate availability. He informed that a committee has been set up to explore better utilisation of surplus ethanol production capacity, including increasing ethanol blending with petrol beyond the current 20 per cent.

The government is also considering the use of ethanol-based cooking stoves as an alternative avenue to absorb excess production.

Meanwhile, ISMA has revised its net sugar production estimate downward from 29.2 million tonnes to 28.5 million tonnes due to lower recovery rates. The government has also reduced its projection for the 2026-27 season.

The demand slowdown has extended beyond sugar. According to industry data, edible oil consumption has also declined due to the LPG shortage, with imports dropping by nearly 9 per cent in March to 1.2 million tonnes.

BV Mehta of the Solvent Extractors’ Association of India said reduced consumption by roadside eateries and restaurants, impacted by higher fuel costs, contributed to the fall in edible oil imports.