To boost supplies and curb price rise in the coming festive season, the sugar industry has recommended that crushing of sugarcane in the 2026-27 season (October-September) be started nearly 10-15 days earlier than the normal schedule and sought financial support from the government.

“Early commencement of crushing is expected to result in lower sugar recovery and reduced cane yields, thereby affecting the operational efficiency and financial viability of mills,” the Indian Sugar and Bio-energy Manufacturers Association (ISMA) and National Federation of Cooperative Sugar Factories (NFCSF) said in a communication to the food ministry indicating financial implications for sugar mills. Usually sugarcane crushing begins by the end of October and early November.

The industry bodies stated that 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.

ISMA and NFCSF sought government support to partly offset the losses, including compensation for recovery loss, an additional domestic sugar sale quota equivalent to October production, a waiver of CGST on domestic sugar sales, or any other suitable mechanism.

Preponing sugarcane crushing 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, the industry stated.

The average retail price of sugar according to the price monitoring cell of the Department of Consumer Affairs, was Rs 50.14/kg on Thursday, an increase of 8.6% year-on-year.

However, the sugar industry stated that Pan-India average ex-mill sugar prices through June were around Rs 39.5-40/kg, below the average cost of production. Even after a recent increase, the season’s average realisation through the end of July reached Rs 40-40.5 per kg, still below the production cost of about Rs 42/kg, the industry pointed out.

Industry has projected the net sugar production for the 2025-26 season, after excluding diversion for ethanol, at 28 million tonne (MT) while opening stock at the beginning of season in October 2025, was 5 MT. The industry has also stated that they have adequate sugar stocks to comfortably meet domestic consumption requirements projected at 28 MT.

The industry has paid about Rs 1.10 lakh crore to sugarcane farmers in the 2025-26 sugar season so far.