3 weeks ago
Sugar industry proposes early cane crushing to boost festive supplies
Sugar makers in India have a plan to help with festive season supplies.
They want to start crushing sugarcane 10 to 15 days earlier than usual.
Normally, crushing begins at the end of October or early November.
Starting earlier would bring fresh sugar to shops before the big festivals.
People buy a lot of sugar during festivals, which can push prices up.
Earlier supplies could help keep sugar prices from rising too much.
But crushing early means getting less sugar from the same cane.
That would cost the factories more money to make the same sugar.
So the sugar makers asked the government to help cover those losses.
Sugar prices at shops are already about 8.6 percent higher than last year.
ISMA and NFCSF have proposed starting sugarcane crushing 10-15 days earlier than normal in the 2026-27 season to boost supplies ahead of the festive season.
The industry bodies warned that early crushing would result in lower sugar recovery and reduced cane yields, affecting mills' operational efficiency and financial viability.
They sought government support including compensation for recovery loss, an additional domestic sugar sale quota, and a waiver of CGST on domestic sugar sales.
Average retail sugar price was Rs 50.14/kg, up 8.6% year-on-year, while ex-mill prices remained below the estimated production cost of about Rs 42/kg.
Industry projected net sugar production of 28 million tonnes for 2025-26, with adequate stocks to meet domestic consumption estimated at 28 million tonnes.
- Who
- The Indian Sugar and Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF), communicating with the food ministry.
- What
- Proposed starting sugarcane crushing 10-15 days earlier than normal in the 2026-27 season and sought financial support from the government to offset losses.
- Where
- India, with pan-India retail and ex-mill sugar price data cited.
- When
- For the 2026-27 season (October-September), ahead of the upcoming festive season; usual crushing begins by the end of October and early November.
- Why
- To bring fresh sugar to the market sooner, strengthen availability, enhance market confidence and contribute to price stability ahead of the festive season.
Key facts
- Proposed change
- Start crushing 10-15 days earlier than normal
- Usual crushing start
- End of October to early November
- Season
- 2026-27 (October-September)
- Average retail sugar price
- Rs 50.14/kg, up 8.6% year-on-year
- Estimated production cost
- About Rs 42/kg
- Projected net sugar production (2025-26)
- 28 million tonnes
- Projected domestic consumption
- 28 million tonnes
- Payments to farmers (2025-26 season)
- About Rs 1.10 lakh crore
Sources
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