Indian sugar mills sold just 7.22 lakh tonnes during August price spike: ISMA-NFCSF
Indian sugar mills sold 7.22 LMT during the August 17–31 price surge, representing under 2.5% of annual consumption. ISMA and NFCSF said prices have since corrected, with retail rates down 11–12% and average ex-mill prices near ₹4,450/quintal, while mills continue prioritising cane payments.
Sugar mills across India sold only 7.22 lakh metric tonnes (LMT) of sugar at an average ex-mill price of Rs 4,996.98 per quintal, or around Rs 50 a kg, during the brief price surge between August 17 and August 31, 2026, The Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) said in a press release on Tuesday.
The two industry bodies said the volume sold during the peak-price period represented less than 2.5% of India’s annual domestic sugar consumption of around 285 LMT, arguing that the recent increase in sugar prices was temporary and limited to a narrow period.
According to ISMA and NFCSF, more than 97.5% of the country’s annual sugar requirement was marketed at normal or subdued price levels. The associations said this showed that the sugar industry did not derive excessive gains from the temporary price increase.
Sugar prices have subsequently corrected significantly across the value chain, the industry bodies said in the press release. Retail sugar prices have declined by around 11-12% nationally to approximately Rs 57.50 per kg, while the pan-India average ex-mill price is currently around Rs 4,450 per quintal, nearly 30% below its peak, the associations added.
State-wise retail prices on September 21 stood at Rs 55.09 per kg in Uttar Pradesh, Rs 55 in Delhi, Rs 56.74 in Maharashtra, Rs 56.19 in Karnataka and Rs 57.45 in Tamil Nadu, according to the press release.
The industry bodies also pointed to the weighted average ex-mill realisation during the 2025-26 sugar season. Up to mid-September, the pan-India weighted average ex-mill realisation stood at around Rs 4,100 per quintal, or Rs 41 per kg.
ISMA and NFCSF said the seasonal average remained significantly below operational expenditure when statutory sugarcane prices and conversion costs were taken into account.
The associations also highlighted sugarcane payments made by mills to farmers.
During the 2025-26 sugar season, mills have paid approximately Rs 1.12 lakh crore to sugarcane farmers, accounting for around 97.5% of total cane payments due, according to the associations.
For the 2024-25 season, more than 99.5% of cane dues have been cleared, they said.
The industry bodies said the correction in sugar prices ahead of the festive season would support affordability for consumers while maintaining the financial liquidity of sugar mills needed for timely payments to farmers.
Deepak Ballani, director general, ISMA, said the 7.22 LMT sold during the August 17-31 period represented less than 2.5% of annual domestic consumption and therefore put the recent price episode in perspective.
He said the industry’s weighted average ex-mill realisation of around Rs 41 per kg for the season remained below the cost of production after accounting for statutory cane prices and conversion costs.
ISMA and NFCSF said they remained committed to maintaining affordable sugar supplies during the festive season while ensuring financially viable operations for mills and timely cane payments to farmers.
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Source : ChiniMandi
