The government has allowed sugar mills to sell sugar produced in October during both October and November, over and above their monthly sales quotas, to increase availability in the domestic market amid higher festive-season demand.
A notification issued by the Ministry of Consumer Affairs, Food and Public Distribution said mills could sell their October production during the two months in addition to the monthly quotas allocated for the respective periods.
Sugar Production Likely to Decline for Second Consecutive Year
India’s sugar production stood at 306 lakh tonnes in the sugar year 2025-26, which ended on September 30, against an earlier estimate of 343 lakh tonnes. The US Department of Agriculture has also lowered its production forecast for 2026-27 from 336 lakh tonnes to 295 lakh tonnes, citing the potential impact of El Niño and deficient rainfall.
Tighter supplies have pushed up domestic sugar prices. Retail prices are currently around Rs 60 per kg. To improve availability and contain prices, the government had asked mills to begin crushing sugarcane from October 15. However, only a small number of mills have started operations, as crushing normally begins in November.
Committee Formed to Examine Sugarcane Farmers’ Demands
Meanwhile, the central government has constituted a committee chaired by former NITI Aayog member Prof. Ramesh Chand to review the problems faced by sugarcane farmers and other issues concerning the sugar industry. The committee will examine farmers’ demands and recommend suitable measures to address their concerns. However, both farmers’ organisations and industry representatives have called for their representatives to be included in the committee.
The committee also includes the Agriculture Commissioner of the Ministry of Agriculture and Farmers Welfare, the Joint Secretary (Sugar) in the Department of Food and Public Distribution, and the Joint Secretary (Legal Metrology) in the Department of Consumer Affairs.