Addressing a conference organised by the India Sugar & Bio-Energy Manufacturers’ Association (ISMA) in New Delhi on Thursday, Ashwini Srivastava, a joint secretary in the Food Ministry said mills need to sell sugar at reasonable prices, and the government will take corrective measures to keep prices stable. “We have asked mills to provide accurate monthly production and sugar sales data,” he said.
Despite a fall in ex-mill prices in the past few days, retail prices are still on the higher side. On Thursday, the all-India average retail price of sugar was ₹60.2 a kg against ₹60.31 on Wednesday. The wholesale price was ₹50-100 a quintal, while mill-level prices showed signs of easing, though they ruled between ₹4,700 and ₹5,100 a quintal.
Lower than estimated output
India’s sugar industry is a major agricultural, industrial, and rural livelihood ecosystem as it is the world’s second-largest sugarcane producer. The sugarcane sector supports nearly 5 crore farmers and around 5 lakh workers in sugar factories and its allied industries. The government last month said retail sugar prices remained broadly stable, increasing by only around 3 per cent annually between August 2024 and July 2026.The government also said that sugar production during the current season (October2025-September2026) is expected to be around 306 lakh tonnes (lt), down from the initial estimate of around 343 lt due to the Red Rot and Top Borer diseases that affected the cane crop. However, even after allowing import of 10 lt of raw sugar at zero duty, the government maintains that adequate sugar stocks are available in the country to meet domestic demand.
Srivastava said that the government has approved permits for import of about 8 lt out of 10 lt announced under the TRQ scheme. He also said that refiners, who had already imported raw sugar at zero duty for re-export (under ALS) have sought to approval 2.65 lt for sales in the domestic market. The government on August 31 allowed two refiners 50,000 tonne each (out of 2.65 lt) to sell in the domestic market during September 1-15. Industry sources said a similar quantity may be approved for sales during the second fortnight, too.
Hoarding to be blamed
The senior official also blamed hoarding for the current price rise, saying the surge was not because of a spurt in demand, rather due to hoarding in anticipation of a further price rise in the festival season. “It is the collective responsibility of the entire sector to ensure that prices remain stable. There is no justification for any price rise during the festivals,” he said.Demand in India normally rises in summer (April-May) and then in August-November due to festivals like Raksha Bandhan, Janmashtami, Ganesh Chaturthi, Dussehra and Diwali.
In the global market, raw sugar October futures contracts were up at 18.38 cents a pound ($408.44 a tonne), while for cash it, the commodity was available at 18.35 cents ($407) at 1930 hours IST. White sugar for delivery in December was up at $533.40 a tonne in London.
Published on September 10, 2026
