New Delhi, Aug. 31 -- The Indian sugar sector is likely to remain in a tight-supply situation through FY27 and possibly beyond, with low inventories, weather risks and firm global prices expected to keep domestic sugar prices elevated, according to a research report by DAM Capital Advisors.

The brokerage estimates sugar inventory at the start of the 2026-27 season on October 1, 2026, at around 3 million tonnes. This would be enough for only about 35 days of consumption and the lowest opening stock in a decade.

DAM Capital expects sugar production in the 2026-27 sugar season (SS27) to be around 29 million tonnes. It said deficient rainfall could hurt sugarcane yields, while an early start to crushing could further reduce sugar recovery....