Record India Sugar Prices Spur Mills to Advance Cane Crushing

Indian Sugar and Bio-energy Manufacturers Association (ISMA) and National Federation of Cooperative Sugar Factories (NFCSF) have jointly requested the government to provide incentives to compensate for financial losses incurred due to the early commencement of sugar crushing operations. The industry bodies aim to start crushing operations 10-15 days earlier than usual, primarily in the national interest to bolster sugar availability and stabilize prices during the festive season.

This proactive decision is contingent on prevailing agro-climatic conditions and would enable a greater supply of sugar to the domestic market. However, both ISMA and NFCSF seek government support to offset the associated financial and operational burdens resulting from the early crushing schedule. In a letter addressed to Union Food Secretary Sanjeev Chopra, ISMA Director-General Deepak Ballani and NFCSF Managing Director Prakash Naiknavare requested the government consider providing additional domestic sugar sale quota equivalent to the sugar produced in October, a waiver of CGST on domestic sugar sales, or other appropriate measures.

They emphasized that the sugar industry has already disbursed around Rs 1.10 lakh crore to sugarcane farmers this season and reassured that the country has sufficient sugar stocks to meet domestic consumption requirements. The associations also noted that the recent surge in sugar prices is not indicative of underlying demand-supply fundamentals and highlighted the uncertainty surrounding sugar stocks as of October 1, 2026, based on government stock verification demands.