India is expected to experience a record-high sugar consumption this year, driven by increased demand during the scorching summer season and the mobilization of millions for the ongoing elections. The surge in consumption is anticipated to elevate local sugar prices and improve the profit margins of major sugar producers, including Balrampur Chini (BACH.NS), Shree Renuka Sugars (SRES.NS), Bajaj Hindusthan (BJHN.NS), and Dwarikesh Sugar (DWAR.NS), enabling them to make timely payments to cane farmers.
Traditionally, the consumption of cold drinks, ice cream, and consequently, sugar, rises in India during the summer months from mid-March to mid-June. However, this year’s demand is expected to surpass the usual levels due to the impact of heat waves and election rallies, leading to an increased consumption of ice cream and soft drinks. Avantika Saraogi, executive director at Balrampur Chini Mills, highlighted the intensified demand for these products amid the prevailing weather conditions.
With maximum temperatures exceeding 40 degrees Celsius in many regions of India and the weather department’s forecast of an above-average number of heat-wave days between April and June, the demand for cooling beverages is expected to remain high. Additionally, India’s hosting of the world’s largest election, involving nearly a billion eligible voters, has contributed to the heightened demand for such products. Political parties are organizing large rallies, some drawing crowds of up to 200,000 people, despite the oppressive heat.
Following a vigorous election rally in Pune, dedicated political party workers sought relief from the sweltering heat by indulging in refreshing soft drinks at a nearby restaurant. One worker, Mahesh Pawar, expressed gratitude to their leader for providing the beverages, emphasizing the importance of such refreshments in keeping spirits high amid the challenging weather conditions.