The pan-India average ex-mill sugar price is currently hovering around ₹4,450 per quintal, which is nearly 30 per cent lower from its peak level, said Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) in a joint statement.

In light of the recent favourable movement in sugar prices across the value chain, retail sugar prices have also witnessed a correction, declining by around 11–12 per cent across the country to approximately ₹57.5 per kg, the industry associations said Tuesday. The retail prices (as of September 21 in top producing States were recorded even less than national average, they said adding in Uttar Pradesh it was ₹55.09/kg, Maharashtra ₹56.74/kg, Karnataka ₹56.19/kg and Tamil Nadu ₹57.45/kg.

“This positive price movement reflects the combined impact of market dynamics and the Government’s continued efforts to maintain a balanced sugar ecosystem supported by the industry, ensuring adequate availability, and safeguarding the interests of consumers and other stakeholders,” the statement said.

Denying that sugar mills have reaped windfall gains from the recent increase in prices, the industry bodies said that ex-mill values corrected rapidly and the vast majority of the nation’s annual supply was dispatched at substantially lower price levels.

“Review of dispatch volumes reveals that the recent price surge was strictly temporary and confined to a very narrow window. Between August 17 and August 31, 2026, sugar mills across India sold only about 7.22 lakh tonne (lt) at an average ex-mill price of ₹4,996.98 per quintal.

“When measured against the country’s total annual domestic consumption of approximately 285 lt, this volume accounts for less than 2.5 per cent of overall annual sales. Consequently, over 97.5 per cent of the domestic requirement has been marketed at normal or subdued price levels, dispelling any notion that the mill sector derived excessive profits from the momentary peak, and highlighting the industry’s role in providing steady, reasonably priced supplies to the market,” said ISMA and NFCSF.

Further they also said that in current sugar season since it began from October 2025 till mid-September, the weighted pan-India average ex-mill realisation stands at around ₹4,100 per quintal (₹41 per kg). This seasonal average remains significantly depressed in relation to actual operational expenditures, particularly when evaluated against statutory input costs and conversion costs.

During the 2025–26 season, sugar mills have already cleared about ₹1.12 lakh crore to sugarcane farmers for buying the crop, accounting for over 97 per cent of the total cane payments due, reflecting the industry’s continued commitment to timely payments to farmers.

Published on September 22, 2026