Mills sold only 7 lakh tonnes of sugar at ₹50/kg in August, average in 2025-26 season ₹41/kg
Pan-India average ex-mill sugar price is currently about 30 per cent lower from its peak level at around ₹4,450 per quintal
The National Federation of Cooperative Sugar Factories (NFCSF) and the Indian Sugar & Bio-energy Manufacturers Association (ISMA) have stated that the pan-India average ex-mill sugar price has dropped around 30 per cent from its peak, currently hovering around ₹4,450 per quintal. This decline in price has influenced the decrease in retail sugar prices, which have reduced by 11-12 per cent across the country, now standing at approximately ₹57.5 per kg.
The price correction has been attributed to market dynamics and the government's efforts to maintain a balanced sugar ecosystem, protecting consumer interests.
Despite the recent price hike, industry bodies deny that sugar mills have benefited excessively from the increase, emphasizing that over 97.5 per cent of the domestic requirement has been sold at normal or subdued price levels. In the current sugar season that began in October 2025, the weighted pan-India average ex-mill realization has been around ₹4,100 per quintal (₹41 per kg), significantly lower than operational expenditures and statutory input costs.
This season, sugar mills have already paid out about ₹1.12 lakh crore to sugarcane farmers, accounting for over 97 per cent of the total cane payments due, demonstrating the industry's commitment to timely payments.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
