Sugar mills plan early crushing as prices rise ahead of festive demand

Sugar mills have proposed starting the 2026-27 crushing season 10-15 days early to improve festive supplies

Indian sugar mills on Thursday proposed starting the 2026-27 crushing season around 10-15 days earlier than usual to bring fresh supplies into the market before the festive season, as sugar prices touched record levels amid concerns over future production.

 

The proposal was made jointly by the Indian Sugar & Bio-energy Manufacturers Association (Isma) and the National Federation of Cooperative Sugar Factories Ltd (NFCSF) after discussions with the Centre. Mills plan to begin crushing "nearly 10-15 days earlier than the normal schedule, subject to prevailing agro-climatic conditions".

 

"This proactive decision will enable fresh sugar to reach the domestic market well ahead of the festive season, further reinforcing consumer confidence and ensuring smooth supplies across the country," the associations said, adding that India has sufficient sugar stocks to meet domestic demand and there is "no cause for concern regarding sugar availability".

 

Industry says prices do not indicate supply shortage

The proposal comes after sugar prices rose amid concerns that below-normal monsoon rainfall could affect cane production. Isma and NFCSF said the recent increase in prices "is not reflective of the underlying demand-supply fundamentals".

 

According to the associations, the pan-India average ex-mill sugar price until June during the current season was about ₹39.5-40 per kg, below the average cost of production. Even after the recent increase, the season's average realisation until the end of July stood at ₹40-40.5 per kg, compared with an average production cost of around ₹42 per kg. They also said sugar mills have paid around ₹1.10 trillion to sugarcane farmers during the current season.

Mills seek government support

Isma and NFCSF said advancing the crushing season would reduce sugar recovery and cane yields, affecting mills' operational efficiency and finances.

 

They have asked the government to consider support measures, including compensation for recovery losses, an additional domestic sugar sale quota equivalent to October production, or a waiver of CGST on domestic sugar sales.

 

In the joint statement, Isma Director General Deepak Ballani and NFCSF Managing Director Prakash Naiknavare said: "The Indian sugar industry stands firmly with the Government of India in addressing the current perceived concerns regarding sugar availability. The industry has chosen to act in the larger national interest by proposing to advance the commencement of the crushing season to ensure adequate availability of sugar and maintain price stability."