Sugar mills across India sold only 7.22 lakh tonnes of sugar at an average ex-mill price of ₹4,996.98 per quintal during August 17–31, 2026, according to a joint statement by the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF). The industry bodies said the recent rise in sugar prices was temporary and that the pan-India average ex-mill sugar price has now declined nearly 30% from its peak to around ₹4,450 per quintal.
Retail sugar prices have also corrected by approximately 11–12% across the country to nearly ₹57.5 per kg. As of September 21, retail prices in major sugar-producing states were below the national average, with Uttar Pradesh at ₹55.09 per kg, Maharashtra at ₹56.74 per kg, Karnataka at ₹56.19 per kg and Tamil Nadu at ₹57.45 per kg. ISMA and NFCSF said the price correction reflects market dynamics and government efforts to maintain adequate sugar supplies while balancing consumer and industry interests. 
The industry associations rejected the suggestion that sugar mills earned windfall gains from the recent price increase. They said the 7.22 lakh tonnes sold during the brief period of higher prices represented less than 2.5% of India's annual domestic sugar consumption of approximately 285 lakh tonnes. Consequently, more than 97.5% of the annual requirement was marketed at normal or subdued price levels. The associations said this demonstrates that the mill sector did not derive excessive profits from the temporary price peak.
For Sugar Season 2025-26, which began in October 2025, the weighted pan-India average ex-mill sugar realisation up to mid-September stands at around ₹4,100 per quintal, or ₹41 per kg. ISMA and NFCSF said this seasonal average remains significantly below the level required to cover statutory sugarcane prices and conversion costs, putting pressure on mill finances.
Despite these financial challenges, sugar mills have paid approximately ₹1.12 lakh crore to sugarcane farmers during the ongoing 2025-26 season, accounting for more than 97% of total cane payments due. The industry bodies said the payment figures reflect their commitment to timely settlement of farmers' dues and maintaining financial stability across the sugar value chain.
