NFCSF urges Centre to disclose sugar stocks after physical verification
NFCSF urged the Centre to disclose sugar stocks after physical verification to curb speculation and price rises. Sugar prices have surged amid tight end-season supplies and Super El Niño concerns. The government may restrict sugar diversion for ethanol, while early crushing is planned to improve November availability.
The Centre should disclose the estimated sugar stocks emerging from its physical verification of mills to curb speculation and help contain the recent rise in prices, National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Prakash Naiknavare said.
The demand comes amid concerns that sugar stocks at the end of the current season on September 30 could fall to around 35 lakh tonnes (lt), leaving limited supplies to meet demand during the first two months of the 2026-27 season, The Hindu Businessline reported.
Naiknavare said market participants were already aware of the likely tightness in sugar supplies and that overselling against allotted sales quotas had added to the price pressure. However, he noted that wholesale prices had eased to around Rs 46 a kg from nearly Rs 48 after the government imposed stock limits.
“The perceived scarcity of sugar has been understood by consumers, producers, farmers, traders and the government. The likely impact of Super El Nino on the crop is another factor. The market has also been disturbed by overselling of quota,” Naiknavare told businessline.
Sugar prices rise sharply
All-India average sugar prices rose 8% in the retail market and 7% in the wholesale market over the past month, according to Consumer Affairs Ministry data. Prices in Delhi and other parts of the National Capital Region have climbed to Rs 55-56 a kg from around Rs 46-48 a month earlier, while the official average price in Delhi stood at Rs 49 a kg on August 12.
Naiknavare described the increase as an “unnatural spike”, saying prices were expected to rise in the coming months but not at the current pace.
The government ordered physical verification of sugar stocks at every mill on July 24, with the exercise scheduled to be completed by August 14. It also imposed a stock limit on July 28, restricting traders to holding a maximum of 400 tonnes of sugar at a time until November 30.
Naiknavare said the Centre should release the stock figures once the verification exercise is completed.
“Starting next week, the government may come out with an official number about sugar stock. This is very crucial to avoid further speculation,” he said.
November supplies could remain tight
The government has asked mills to begin crushing operations early in October so that around 15 lt of sugar can be produced, compared with the normal output of about 5 lt during the period. Mills, however, have sought incentives to make early crushing financially viable, citing lower-than-normal cane recovery.
Naiknavare said net sugar production during the current season is estimated at 279 lt, which should be sufficient to meet October demand of around 24 lt. Supplies could become tighter in November, he said.
Mills in Karnataka generally begin crushing early, and if other mills also start operations from October 15, fresh production along with carryover stocks could help meet November demand. Supplies are expected to improve from December as new-season sugar enters the market in larger volumes.
Ethanol diversion may face restrictions
Naiknavare said the Centre’s first step after completing the stock verification could be to regulate the diversion of sugar towards ethanol, as ensuring adequate domestic sugar availability remains the government’s priority.
About 24 lt of sugar is estimated to be diverted to ethanol during the current October-September season, down from 34 lt in 2024-25. Industry experts see little scope for diversion for biofuel production during 2026-27 if domestic supplies remain tight.
Industry leaders said the government should inform mills in advance if it plans to restrict the use of sugarcane juice or B-heavy molasses for ethanol production. An announcement is expected by the end of August.
Sugar diversion to ethanol stood at 43 lt in 2022-23 and 24 lt in 2023-24.
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Source : ChiniMandi
