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Informist, Wednesday, Sept. 9, 2026

 

By Afra Abubacker and Upasika Singhal 

NEW DELHI – India's sugar production in the current season ending September is estimated at 27.90 million tonnes, according to the Indian Sugar & Bio-Energy Manufacturers Association. As of Aug. 31, mills produced 27.75 million tonnes of sugar, and about 150,000 tonnes more are likely to come from Karnataka and Tamil Nadu under the special sugar season (Jul-Sep), ISMA Director General Deepak Ballani said.

 

Barring a few mills in Karnataka and Tamil Nadu, mills across the country have ended sugarcane crushing operations by mid-April for the 2025-26 season. About 17 units are operational in these southern states and are likely to continue crushing cane till September. Based on the prevailing trend, the final sugar production in the current year is expected to be 27.9 million tonnes, Ballani said on the sidelines of ISMA's India Sugar & Bio-Energy conference here Wednesday. Last year, the country produced 26.1 million tonnes of sugar and had a carryover stock of 7.9 million tonnes, resulting in total supplies of nearly 34 million tonnes for 2024-25 (Oct-Sep). 

 

The ongoing sugar season opened with a carryover stock of 5 million tonnes, and with estimated production of 27.9 million tonnes of sugar, total availability is nearly 33 million tonnes. However, some 825,000 tonnes of sugar were shipped out of the country this year before the government banned exports in May. 

 

With India's annual sugar consumption estimated at around 28.5 million tonnes, the country is likely to close the current season with a carryover of 3.5 million tonnes of sugar as of Sept. 30, Ballani said. This is considered a tight supply situation, as fresh sugar supplies typically pick up pace only from November, while peak sugar demand starts from October ahead of Diwali and other festivals. 

 

To improve supplies and cool the record-high sugar prices, the government has allowed 1 million tonnes of raw sugar imports through October-end, and asked refineries to divert some refined sugar produced from previously imported raw sugar to domestic markets instead of exporting it. Ballani said refineries have already started releasing such sugar in domestic markets and about 250,000-300,000 tonnes of sugar are likely to come from port-based refineries by Oct. 31, offering "immediate comfort" to the market.

 

These supplies from coastal refineries are above the 1-million-tonne duty-free raw sugar imports permitted in August, Ballani said. Of this, mills have already applied to import roughly 800,000 tonnes through tariff rate quota, and the government has asked mills to apply for the remaining quota. 

 

To ensure the market is well supplied to meet the sugar demand for festivals such as Diwali and wedding season, the government has also asked domestic mills to advance crushing operations by 15 days to mid-October. "Refinery supply will offer immediate comfort, and fresh raw sugar imports by mills will take time. So advancing crushing will help boost supply," Ballani said. 

 

"Refining sugar will take time. Even if some imports reach on Oct. 31, it will be under processing in November. But we need more comfort for October. So that there is no speculation and unnecessary perception that there are not enough sugar stocks for festivals," Ballani said, adding that raw sugar shipments have already started slowly arriving in Indian ports. According to industry experts, a vessel carrying some 70,000 tonnes of raw sugar has recently arrived at ports. 

 

Sugar prices had rallied since July, but rose sharply in August amid speculation that stocks could tighten by October, prompting panic buying ahead of the festival season. Ex-mill prices rose to INR 6,000-6,400 per 100 kg in August from INR 4,600-4,800 in July. To control prices, the government allowed mills to import raw sugar at nil duty, and ex-mill sugar prices have been gradually declining as the option to import has removed the speculative premium built into sugar rates. 

 

Ballani said that though domestic sugar prices are currently declining, improved import parity may emerge in the coming weeks amid volatile global sugar prices. Wednesday, sugar prices in Uttar Pradesh markets were above INR 5,000, while in Maharashtra they were around INR 4,650-INR 4,850 per 100 kg. In Karnataka, prices were around INR 4,700-INR 4,900, and in Tamil Nadu, prices were INR 4,630-INR 4,800 per 100 kg, according to traders.  End

 

Edited by Saji George Titus

 

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