India’s sugar demand is poised to reach unprecedented levels this year, fueled by a combination of heat waves and the mobilization of millions for elections amidst soaring temperatures. This surge in demand during the peak summer season is expected to have far-reaching implications for sugar producers and the agricultural sector at large.
As temperatures soar above 40 degrees Celsius in many parts of the country, demand for cold drinks and ice cream, and consequently, sugar, is on the rise. Avantika Saraogi, executive director at Balrampur Chini Mills, attributes this above-average demand to the prevailing heat waves and election-related rallies, which drive the consumption of refreshing beverages.
India, currently hosting the world’s largest election, witnesses massive political rallies despite the sweltering heat. The campaign fervor intensifies as political parties hold rallies attended by thousands, further boosting demand for cooling beverages to combat the scorching temperatures.
Against this backdrop, India’s sugar consumption during April-June is expected to surge to 7.5 million tons, marking a 5% increase from the previous year. Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd., anticipates this year’s demand spike to elevate total consumption to a record 29 million metric tons, surpassing previous years’ figures.
The surge in demand has already begun impacting sugar prices, with a nearly 3% increase observed in a fortnight. Despite the government’s efforts to allocate a higher quota for April, prices continue to rise due to robust demand from bulk consumers.
While the current spike in demand is deemed temporary, industry experts anticipate a return to normal growth rates next year. However, for the time being, the sugar industry is poised to capitalize on the unprecedented demand, providing a boon to sugar producers and ensuring timely cane payments to farmers.
As India navigates through the sweltering heat and the fervor of election season, the surge in sugar demand underscores the dynamic interplay between weather patterns, socio-political events, and economic dynamics, shaping consumption trends and market dynamics in the country’s agricultural sector.
