The Indian government has permitted sugar mills to commence sugarcane crushing early in the 2026-27 season, allowing them to sell production from October 2026 during the months of October and November. According to an August 14 notification by the Directorate of Sugar and Vegetable Oils, the move aims to regulate the orderly release of sugar into the domestic market and avoid commodity imports.
Dilip S Patil, Managing Director of Samarth SSK Ltd and Co-Chairperson of the Sugar Bioenergy Forum, noted that the framework supports overall market stability by helping mills monetize early-season production without creating artificial shortages, thereby reducing the likelihood of imports. Deepak Ballani, Director-General of the Indian Sugar and Bio-energy Manufacturers Association (ISMA), added that the decision, alongside other government measures, will help stabilize sugar prices.
In a related development, the government issued a notification stipulating that bulk buyers using over 10 tonnes of sugar a month cannot hold more than 15 days of stock between September 1 and November 30. The rule covers confection and soft drink manufacturers, food processors, and sweet makers. This comes as retail sugar prices in New Delhi surged to a record high of ₹55.70 a kilogram, marking an increase of nearly 10 percent within a week and over 30 percent since June.
Global market prices have also climbed to an 18-month high, driven by concerns over El Nino, higher crude oil prices, and a widening supply deficit. On the InterContinental Exchange in New York, October raw sugar futures were quoted at 17.67 US cents a pound, while white sugar prices in London stood at $549.90 a tonne. Industry sources indicate that landed import costs could reach ₹58-60 a kg.
Ending sugar stocks for the current season ending September are projected at 35 lakh tonnes, down from 49 lakh tonnes last season. Net production is pegged at 280 lakh tonnes against an expected consumption of 290 lakh tonnes. Industry bodies such as ISMA and the National Federation of Cooperative Sugar Factories (NFCSF) have written to the Ministry of Food seeking compensation for early crushing, citing a potential 2 percent loss in sugar recovery. While the government has not yet taken a final decision on imports, views remain divided among trade participants regarding the adequacy of domestic supplies.
"Regulatory interventions like early crushing permissions and stock limits for bulk buyers are crucial steps to manage supply chain pressures and curb retail price volatility. When essential commodities face tight ending stocks and rising global prices, proactive policy measures help protect domestic availability and prevent heavy reliance on costly imports. For businesses operating in the food processing and retail sectors, monitoring inventory limits closely over the coming months will be essential for managing operational costs." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
