2 hrs ago
Sugar Mills Report Limited High-Price Sales, Lower Seasonal Realisation
Sugar prices briefly became higher in some markets, but sugar mills said this period did not last long.
Mills sold only a small amount of sugar at the higher price.
Most sugar was sold at normal or lower prices during the year.
The average price received by mills in the 2025–26 season was about ₹41 per kilogram.
Retail sugar prices also fell across India.
The industry groups said this helped consumers get sugar at lower prices.
They also said mills had paid most of the money owed to sugarcane farmers.
Their statement was intended to show that mills did not make unusually large profits from the short price increase.
Indian sugar mills sold about 7.22 lakh tonnes at an average ex-mill price of ₹4,996.98 per quintal between August 17 and 31, 2026.
The industry associations said this volume represented less than 2.5% of annual domestic sugar consumption of approximately 285 lakh tonnes.
The weighted pan-India average ex-mill realisation during the 2025–26 season was around ₹4,100 per quintal, or ₹41 per kilogram.
Pan-India ex-mill sugar prices were around ₹4,450 per quintal, while retail prices had fallen 11–12% to approximately ₹57.5 per kilogram.
Sugar mills had paid about ₹1.12 lakh crore to sugarcane farmers, clearing more than 97% of dues for the season.
- Who
- Indian sugar mills, the Indian Sugar & Bio-energy Manufacturers Association, and the National Federation of Cooperative Sugar Factories.
- What
- The industry associations reported limited sales during a short sugar-price increase, lower seasonal realisations, falling retail prices, and substantial payments to sugarcane farmers.
- Where
- Across India, including the major producing states of Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu.
- When
- The report was published September 22, 2026; the cited high-price sales occurred from August 17 to August 31, 2026, during the 2025–26 sugar season.
- Why
- The associations said the short-lived price increase did not generate windfall gains because most sugar was sold at normal or subdued prices, while market and government measures supported supply and price stability.
Key facts
- High-price sales period
- August 17–31, 2026
- Sugar sold during high-price window
- About 7.22 lakh tonnes
- Average price during window
- ₹4,996.98 per quintal
- 2025–26 seasonal average
- Around ₹4,100 per quintal, or ₹41 per kilogram
- Current pan-India ex-mill price
- Around ₹4,450 per quintal
- Current retail price
- Approximately ₹57.5 per kilogram, after an 11–12% decline
- Cane payments
- About ₹1.12 lakh crore paid, representing more than 97% of dues
Quotes
ISMA and NFCSF
Indian sugar industry associations representing mills and cooperative sugar factories
“When measured against the country’s total annual domestic consumption of approximately 285 lt, this volume accounts for less than 2.5 per cent of overall annual sales.”
thehindubusinessline.com
“Review of dispatch volumes reveals that the recent price surge was strictly temporary and confined to a very narrow window.”
thehindubusinessline.com
Sources
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