Sugar prices have declined significantly across India ahead of the festive season, providing relief to consumers. The Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) said retail sugar prices have fallen by around 11–12% to nearly ₹57.5 per kg across the country. As of September 21, retail prices were ₹55.09 per kg in Uttar Pradesh, ₹55 in Delhi, ₹56.74 in Maharashtra, ₹56.19 in Karnataka and ₹57.45 in Tamil Nadu.
At the ex-mill level, the pan-India average sugar price is currently around ₹4,450 per quintal, nearly 30% below the recent peak. ISMA and NFCSF said the correction reflects market dynamics as well as government efforts to maintain adequate sugar availability and balance the interests of consumers, farmers and the sugar industry.
The two industry bodies also clarified that sugar mills did not make windfall gains from the recent price rise. According to the statement, between August 17 and August 31, 2026, sugar mills sold around 7.22 lakh metric tonnes (LMT) at an average ex-mill price of ₹4,996.98 per quintal. This quantity represented less than 2.5% of India's annual domestic sugar consumption of around 285 LMT. Therefore, more than 97.5% of the annual requirement was marketed at normal or subdued price levels.
For the ongoing Sugar Season 2025-26, the weighted pan-India average ex-mill realisation up to mid-September stands at around ₹4,100 per quintal, or ₹41 per kg. ISMA and NFCSF said this average remains significantly below the level required to cover statutory cane costs and other conversion and operational expenses.
The industry has also reported substantial payments to sugarcane farmers. During Sugar Season 2025-26, sugar mills have paid around ₹1.12 lakh crore in cane dues, representing approximately 97.5% of the total amount payable. For Sugar Season 2024-25, more than 99.5% of cane dues have already been cleared.
ISMA and NFCSF said the fall in sugar prices is a positive development for consumers ahead of the festive season and could support further softening in retail prices in the coming weeks. Lower sugar prices are also expected to help keep sugar-based products affordable and support consumer demand during the festive period.
Deepak Ballani, Director General of ISMA, said the 11–12% correction in retail sugar prices and nearly 30% decline in ex-mill prices from their peak provide important context to the recent price movement. He said only about 7 LMT of sugar, or less than 2.5% of annual consumption, was sold during the brief period of higher prices, while the majority of supplies were marketed at normal or lower price levels. He also reiterated the industry's commitment to maintaining affordable sugar supplies while ensuring viable realisations for mills and timely payments to sugarcane farmers.
ISMA and NFCSF reaffirmed that the sugar industry will continue to support uninterrupted and affordable sugar supplies during the festive season while maintaining the financial liquidity of sugar mills needed for timely cane payments to farmers.
