Sugar mills are set to begin crushing operations 10–15 days earlier than usual during the 2026-27 sugar season, which officially begins on October 1. The decision follows discussions between the sugar industry and the Centre and is aimed at ensuring that fresh sugar reaches the market ahead of the festive season, when demand typically rises. Industry bodies, however, have sought government support to compensate mills for the financial impact of crushing relatively immature sugarcane.
The Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd (NFCSF) have said that India has sufficient sugar stocks to meet domestic requirements and that there is no immediate shortage. ISMA Director General Deepak Ballani said the decision to start crushing early is a proactive step to ensure uninterrupted sugar supplies during the festive period and help maintain price stability.
Sugar prices have continued to rise despite several government measures. Average retail sugar prices recently reached around ₹50 per kg, nearly 9% higher than a year earlier and about 7% higher over the past month. The Centre has also imposed stockholding limits on sugar dealers, ordered physical verification of stocks held by mills and extended the sugar export restrictions through September to improve domestic availability.
According to industry estimates, sugar stocks could come under pressure before the new season gains momentum. A senior industry executive said traders estimate closing stocks at around 3.5 million tonnes. If monthly consumption in October reaches nearly 2.4 million tonnes, stocks could fall to around 1.1 million tonnes by the end of the month. The concentration of stocks in certain regions could also create supply tightness in western and southern India, making an early start to crushing important.
However, the industry has raised concerns about the impact of early crushing on sugar recovery and overall production. Sugarcane harvested before reaching full maturity generally produces lower sugar recovery, meaning mills may obtain less sugar from the same quantity of cane. Industry representatives have warned that this could increase production costs and potentially reduce total sugar output in the 2026-27 season.
To compensate for the financial impact, ISMA and NFCSF have asked the government to allow mills to sell the additional sugar produced during October without waiting for subsequent monthly release quotas. Under the existing system, mills are permitted to sell a fixed quantity of sugar each month, while October quotas are generally limited because crushing normally begins later in the month.
The industry has also requested a temporary waiver of the Centre’s share of Central GST (CGST) on domestic sugar sales. ISMA said the proposed tax relief is intended to support sugar mills rather than provide a direct subsidy to consumers. According to the association, the measure could partly offset the losses caused by lower sugar recovery and higher costs associated with early crushing.
The industry expects early crushing to bring fresh sugar into the market sooner and strengthen supplies during the festive season. This could help moderate prices and reduce the risk of temporary shortages, particularly in regions where available stocks are relatively low.
At the same time, the industry has urged gur and khandsari manufacturers to delay the start of their crushing operations. These units traditionally begin crushing earlier than sugar mills and compete for the same sugarcane during the initial weeks of the season. Delaying their operations, according to ISMA, could help ensure adequate cane availability for sugar mills undertaking early crushing.
The early start to the 2026-27 sugar crushing season is therefore being viewed as a preventive supply-management measure. While it could improve the availability of fresh sugar ahead of the festive season, the impact on sugar recovery, mill profitability and overall sugar production will remain a key concern for the industry
