Union Road Transport and Highways Minister Nitin Gadkari has said that governments have limited scope to directly determine sugar prices because the commodity operates in a globalised market where demand and supply influence prices. Speaking at an event organised by the National Federation of Cooperative Sugar Factories Ltd. (NFCSF) in New Delhi on September 22, Gadkari was responding to demands from state ministers and sugar industry representatives for an increase in the minimum selling price of sugar.
Gadkari said sugar prices are influenced by international market conditions, particularly developments in major producing countries. He cited Brazil as an important factor for the global sugar market and said that surplus production there can put downward pressure on sugar prices in India. He also compared sugar with other agricultural commodities, saying global market conditions influence prices of products such as corn and palm oil as well. 
The minister pointed to the difference between sugar production costs in Brazil and India. According to Gadkari, sugar production in Brazil costs around ₹23 per kg, while the cost in India is at least ₹33–34 per kg. He attributed part of the difference to Brazil's larger landholdings and higher levels of mechanisation. As a result, a period of surplus sugar production in Brazil can affect international prices and, in turn, the Indian market.
Gadkari's comments come against the backdrop of a sharp increase in Indian sugar prices during July and August 2026. Retail sugar prices rose from ₹48.18 per kg on July 20 to ₹55.70 per kg on August 20, according to the government. The Centre attributed the price increase to a combination of lower-than-expected domestic production, higher festive-season demand, weather-related crop damage, tightening global supplies, and speculation and hoarding. The government subsequently introduced measures including stock limits, closer verification of sugar stocks and duty-free imports of 10 lakh tonnes of raw sugar.
The government has also said that international sugar prices increased by more than 16% between June 30 and August 20, 2026, as the global market faced tighter supplies. At the same time, domestic availability has been supported through policy measures and the government expects the new crushing season to improve supplies.
Beyond the immediate price issue, Gadkari stressed that the long-term viability of Indian sugar mills cannot depend on sugar alone. He called for greater focus on sugarcane by-products, biomass utilisation, organic manure and other value-added products. The approach is aimed at creating additional revenue streams for mills and improving the overall economics of sugarcane cultivation and processing. 
For sugarcane farmers, the distinction between sugar prices and cane prices remains important. The Centre has fixed the FRP of sugarcane for the 2026-27 sugar season at ₹365 per quintal for a basic recovery rate of 10.25%. This is separate from the industry's demand for a higher minimum selling price for sugar.
The NFCSF, which represents around 260 cooperative sugar mills and nine state cooperative sugar federations, held the event in New Delhi where National Efficiency Awards were also presented to cooperative sugar factories.
