India’s Diamond Appetite Rises as Sugar Allocations Remain Cautious and Cotton Import Projections Hit Record High

India’s Diamond Appetite Rises as Sugar Allocations Remain Cautious and Cotton Import Projections Hit Record High​

The Indian economy is showing resilience across key sectors, as demand for diamond jewellery grows rapidly amid gold price volatility, while the government maintains cautious control over domestic sugar supplies. Meanwhile, agricultural intelligence in Kerala leverages AI to build a national template for climate-smart farming.

Global Diamond Market: India Rises as Key Consumer​

The appetite for diamond jewellery among Indian consumers is increasing significantly, according to industry experts at Caratlane. While gold prices remain volatile, the growing consumer demand is bolstering the market.

Saumen Bhaumik, MD of Caratlane, noted that although India processes nearly 90 percent of the world's diamonds, it has only recently emerged as a major consumer market. He stated that India is now the second-largest diamond consumer globally, holding a 12 per cent market share. This places India ahead of China and Japan, both of which hold five per cent shares. The United States leads with a 53 per cent share in the global market.

The domestic natural diamonds market in India was estimated at about $8 billion, representing nearly one-tenth of the broader jewellery market, which is valued between $80 and $90 billion. For Caratlane, natural diamond studded jewellery contributes over 90 per cent of the brand's sales.

Facing strong demand for low-carat, lightweight jewellery, which saw a rapid growth trend after the launch of a 9-carat range, Caratlane recorded a revenue of ₹4,690 crore in FY26, marking an increase of nearly 18 per cent from FY25.

Commodity Outlook: Sugar Quotas and Cotton Projections Set​

The Food Ministry has set the August sugar sales quota, confirming the cumulative allocation for October 2025 through August 2026 at 245.5 lakh tonnes (lt). This represents a decrease of 2.6 per cent from the 252 lt allocated in the corresponding period last year.

Industry sources indicate that if domestic stock remains limited, the government may curb the diversion of sugarcane juice for ethanol during the first three months of the 2026-27 season. This measure aims to ensure adequate sugar supply to the domestic market ahead of festival demand expected during October and November. Industry veterans also highlighted the existing concerns regarding stock setting limits, noting that if sugarcane juice is restricted, Band C-heavy molasses remains one of the two options for ethanol feedstock.

In the fibre sector, the Cotton Association of India (CAI) has significantly raised import projections for the 2025-26 season, projecting a record high of 60 lakh bales (of 170 kg each). This sharp increase is driven by the consuming sector taking advantage of the 11 per cent duty exemption. Earlier, CAI projected imports at 47 lakh bales.

CAI also reduced its export estimate for the same season by three lakh bales, setting it at 15 lakh bales against last year’s exports of 18 lakh bales.

The total estimated cotton supply for 2025-26 stands at 452.59 lakh bales, compared to 393.59 lakh bales in the previous year. This supply comprises an opening stock of 55.59 lakh bales, projected imports of 60 lakh bales, and pressing of 337 lakh bales.

Operational Updates Across Industries​

Agricultural Technology Boost in Kerala​

Kerala is utilizing indigenous AI innovation to strengthen climate-smart agriculture through the deployment of Annam.AI smart weather stations by the Indian Institute of Technology, Ropar (IITR). These stations are part of the state government's 100-day action plan designed to improve farm-level decision-making and provide reliable weather information.

These specialized stations monitor seven critical parameters: temperature, humidity, rainfall, wind speed, wind direction, solar radiation, and soil moisture. What differentiates Annam.AI is its AI-powered weather analytics, which delivers high accuracy forecasts at a 3-km resolution. The system integrates seamlessly with the advisory engine to provide real-time crop advisories, disaster warnings, and disease risk alerts.

Manufacturing Requirements for Polyester Blended Cloth​

A tender notice has been released inviting processing units to manufacture cloth varieties utilizing polyester, cotton, and viscose blends. Key production requirements include:

Corporate Financial Updates​

Shanthi Gears Ltd announced that the extract of its Unaudited Financial Results for the quarter ended June 30, 2026, has been published in Dinamani (Thamizh) and Business Line (English) Newspapers on July 30, 2026.

Market Data Summary​

SHANTIGEAR Stock Price Movement​

As of 1:10 PM, shares of Shanthi Gears Limited are slipping by 1.35% in live trading, currently at ₹413.2 as the company sheds ₹5.65 per share. The stock trades on a volume of 15,481 shares during the ongoing market session.