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Informist, Friday, Aug. 21, 2026

 

MUMBAI – To ensure sugar is available to meet peak festival season demand, cooperative sugar mills will try to start crushing by Oct. 15, subject to state government approvals, the National Federation of Cooperative Sugar Factories Ltd. said. However, the federation has asked the government to compensate for the financial losses mills will incur on reduced sugar recovery due to early crushing. Sugar demand is expected to peak ahead of Navratri, Durga Puja, and Dussehra in October, followed by Diwali and Chhath Puja in November. 

 

"The early crushing invariably results in reduced recovery of 2-3%," the federation said, adding that it has requested the government to waive goods and services tax on sugar produced and sold in October and November. It has also sought soft loans for cooperative sugar mills facing liquidity constraints to meet pre-season expenses and commence crushing operations.

 

Though ex-mill sugar prices have surged from around INR 4,900 per 100 kg in July to INR 6,000 in some markets on Friday, the federation said cooperative sugar mills have not benefited from the recent price increase, as average sugar realisation for the current season remains around INR 40 per kg, below the estimated production cost of INR 43 per kg. Citing this, it reiterated its demand for the government to hike the minimum selling price of sugar to INR 43 from INR 31 per kg. 

 

However, the cooperative sugar industry body said it supports all government measures to contain the recent rise in sugar prices. The government has imposed stock limits on traders and bulk buyers, conducted physical stock verification at mills, and permitted duty-free imports of 1 million tonnes of raw sugar. 

The federation rejected claims that sugar diversion towards ethanol production was responsible for the current increase in sugar prices. The sugar sector's contribution to ethanol supply has declined to 28% from 86% and, therefore, this has no role in the current sugar price hike, it said.  End

 

Reported by Khushi Singh

Edited by Avishek Dutta

 

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