Sugar industry rejects profiteering claims, says mills sold less than 2.5% of annual demand at August peak

Rejecting claims of profiteering, the sugar industry said that mills across India sold just over 7 lakh metric tonnes (LMT) of sugar at elevated prices during a brief period in August, accounting for less than 2.5% of the country’s annual domestic consumption. Retail sugar prices have since fallen 11-12% to around Rs 57.5 per kg, they said, pushing back against claims that mills benefited disproportionately from the brief price surge.

According to a joint statement by the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF), the sugar mills sold the 7.22 LMT between August 17 and August 31, 2026, at an average ex-mill price of Rs 4,996.98 per quintal. With India’s annual domestic sugar consumption estimated at around 285 LMT, the volume sold during the period represented less than 2.5% of annual consumption, they added.

The associations said the data showed that the recent spike in sugar prices was temporary and limited to a narrow window, with more than 97.5% of the country’s annual requirement marketed at normal or subdued price levels.


State-wise retail prices recorded on September 21 were lower in several major markets. Sugar was priced at Rs 55.09 per kg in Uttar Pradesh, Rs 55 per kg in Delhi, Rs 56.74 per kg in Maharashtra, Rs 56.19 per kg in Karnataka and Rs 57.45 per kg in Tamil Nadu. At the ex-mill level, average sugar prices across India are currently around Rs 4,450 per quintal, nearly 30% below their peak, the associations said.

The industry bodies said the correction reflected market dynamics as well as continued government efforts, with industry support, to maintain adequate availability and balance the interests of consumers and other stakeholders.

For the entire Sugar Season 2025-26 up to mid-September, the weighted pan-India average ex-mill realisation stood at around Rs 4,100 per quintal, or Rs 41 per kg. ISMA and NFCSF said this seasonal average remained significantly below operational costs, including statutory sugarcane prices and conversion costs.

The associations also highlighted the payments made to sugarcane farmers. During the current sugar season, mills have paid approximately Rs 1.12 lakh crore to farmers, representing around 97.5% of total cane payments due, they said. For the 2024-25 sugar season, more than 99.5% of cane dues have been cleared.

ISMA and NFCSF said the availability of sugar at affordable prices ahead of the festive season was encouraging and expected prices to remain soft in the coming weeks.

Deepak Ballani, Director General, ISMA, said the recent price correction needed to be viewed in the context of actual sales volumes during the brief period of elevated prices. “Barely 7 LMT, less than 2.5% of India's annual consumption, moved during that brief window; the remaining 97.5% has been supplied at normal or subdued prices,” Ballani said.

He added that the season’s weighted average ex-mill realisation of around Rs 41 per kg remained below the cost of production after accounting for statutory cane prices and conversion costs.

The associations also reiterated that the sugar industry has played a role in stabilising domestic food inflation, while maintaining that its priority ahead of the festive season remains uninterrupted and affordable supplies for consumers alongside timely payments to sugarcane farmers.