In line with Government discussions, ISMA & NFCSF propose early sugar season to strengthen domestic supply
ISMA and NFCSF proposed starting the 2026-27 sugar crushing season 10–15 days earlier to boost festive-season supplies and stabilise prices. They reaffirmed adequate sugar stocks, sought government compensation for operational losses, and urged against speculative buying and hoarding.
Following recent discussions with the Government and in line with the joint assurance issued earlier by ISMA and NFCSF during a meeting dated 17th July’ 2026 with the Joint Secretary (Sugar), the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and National Federation of Cooperative Sugar Factories Ltd. (NFCSF) has proposed to commence the 2026-27 sugar season nearly 10-15 days earlier than the normal schedule, subject to prevailing agro-climatic conditions.
This 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.
In a joint statement, both the Associations said that the country continues to have adequate sugar stocks to comfortably meet domestic consumption requirements, and there is no cause for concern regarding sugar availability. The proposal to advance crushing reflects the sector’s continued commitment to supporting the Government’s efforts to ensure uninterrupted supplies and a well-balanced domestic market.
ISMA, jointly with NFCSF, noted that the recent movement in sugar prices is not reflective of the underlying demand-supply fundamentals.
During the current sugar season, pan India average ex-mill sugar prices up to June were around ₹39.5-40.0 per kg, which was below the average cost of production. Even after the recent increase, the season’s average realization up to the end of July’ 2026 reached ₹40.0 – 40.5 per kg, which is still below the cost of production of sugar of around ₹42 per kg. Moreover, the sugar industry has already paid around 1.10 Lakh crores to the farmers in the current sugar season.
The recent price movement should therefore be viewed in its proper context and not as an indication of any supply constraint.
The early commencement of crushing is expected to bring fresh sugar into the market sooner, particularly ahead of the festive season, thereby strengthening availability, enhancing market confidence and contributing to price stability without imposing any undue burden on consumers.
While this decision serves the larger public interest, it also entails significant operational and financial implications for sugar mills. Early commencing crushing is expected to result in lower sugar recovery and reduced cane yields, thereby affecting the operational efficiency and financial viability of mills.
Recognising the industry’s proactive initiative in the national interest, ISMA and NFCSF have requested the Government to consider appropriate support measures to partly offset the losses associated with the early commencement of crushing, including compensating recovery loss (as was successfully done in the past); additional domestic sugar sale quota equivalent to the sugar production in October or waiver of CGST on domestic sugar sales. These measures would help compensate mills for the economic impact of advancing the crushing season while enabling them to continue supporting the country’s food security and market stability objectives.
ISMA and NFCSF reiterated that the Indian sugar industry remains fully committed to working closely with the Government of India and all stakeholders to ensure:
- Adequate and timely availability of sugar across the country;
- Stable and transparent market conditions;
- Reasonable prices for consumers;
- Timely payments to sugarcane farmers; and
- Long-term sustainability of the Indian sugar sector.
The Associations once again appeal to all stakeholders to rely on verified information and refrain from speculative buying, hoarding or spreading misleading perceptions regarding sugar availability. The coordinated efforts of the Government and the sugar industry, together with the proposed early commencement of crushing operations, are expected to ensure adequate availability of sugar and stable prices throughout the forthcoming festive season and beyond.
Issuing the joint statement Deepak Ballani, Director General, ISMA, and Prakash Naiknavare, Managing Director, NFCSF, 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. ISMA and NFCSF remain fully committed to working closely with the Government and all stakeholders to ensure uninterrupted sugar availability, protect consumer interests, and continue supporting the livelihoods of millions of sugarcane farmers.”
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Source : ChiniMandi
