Across the sugar industry, the approach to a new crushing season has evolved. The focus is no longer limited to boiler pressure or recovery percentages. It now involves managing choices between sugar, ethanol, and power, and maximising value from every tonne of cane even before crushing begins. This shift, from operating standalone sugar units to managing integrated enterprises, defines modern season preparedness.The planning baseline has evolvedThe Fair and Remunerative Price (FRP) for 2026–27 has been set at ₹365 per quintal, a 2.81 per cent increase over the previous year, and more than 100 per cent above the estimated production cost of ₹182 per quintal. However, for mills in Uttar Pradesh, the more critical benchmark remains the State Advised Price (SAP). In 2025–26, SAP stood at ₹400 per quintal for early maturing varieties and ₹390 for common varieties ₹25–35 higher than the FRP. While the 2026–27 SAP is yet to be announced, mills continue to anchor their procurement planning, working capital arrangements, and payment schedules around SAP. Both FRP and SAP carry a statutory obligation: full payment to farmers within 14 days of cane delivery under the Sugarcane Control Order, 1966. Any delay is not merely a financial lapse; it risks eroding farmer trust and invites regulatory consequences.Equally critical is treasury planning. Ethanol receivables from Oil Marketing Companies typically arrive within three weeks of dispatch, supporting working capital during peak operations. However, aligning cane payment obligations with ethanol settlement cycles at full-season volumes requires disciplined forecasting rather than reactive management.Feedstock flexibility is now a competitive imperativeIndia’s ethanol blending programme has crossed 20 per cent in ESY 2025–26, with procurement rising from 38 crore litres in 2013–14 to over 1,200 crore litres today. Notably, sugar mills now contribute only around 30 per cent of this volume through cane juice, syrup, and molasses, while grain-based sources, primarily maize - account for the remaining 70 per cent. Maize’s share alone has grown from 6 per cent in ESY 2022–23 to nearly 50 per cent today.This structural shift means the programme is no longer dependent on the sugar sector alone. Mills operating inefficient distilleries risk losing competitiveness to grain-based producers.The economics reinforce this reality. Direct cane juice yields 70–80 litres of ethanol per tonne of cane at a notified price of ₹65.61 per litre, whereas C-heavy molasses yields only 22–25 litres at ₹57.97 per litre. Mills equipped with the flexibility to switch between feedstocks in response to sugar inventories and policy signals are better positioned to protect margins. Those without this capability remain exposed to suboptimal returns. This flexibility must be validated and operationally ready before the season begins.Maintenance windows are valuableA successful season is rarely determined on the first day of crushing. It is built during the preparation phase. Shutdown periods represent the most valuable, yet often underutilised window for readiness. Comprehensive maintenance across boilers, turbines, mill rollers, distillery equipment overhaul, instrumentation calibration, and critical spare verification must be completed before commissioning. The 2025–26 season, where production declined to approximately 27–28 million tonnes against early projections exceeding 30 million tonnes due to weather disruptions, underscores a key lesson: external challenges cannot be controlled, but operational lapses can.Cogeneration readiness is equally critical. A well-configured high-pressure system can export 80–120 kWh of power per tonne of cane, generating stable revenue through long-term Power Purchase Agreements. However, this value is realised only if systems are fully operational from day one and grid evacuation arrangements are secured in advance.The season begins before the cane arrivesThe most consistent mills are not always the largest, but the most prepared. Their cane development programmes are in place, feedstock strategies are clearly defined, maintenance is fully completed, payment systems are well connected to the field, and treasury functions are aligned with seasonal requirements.Hence, preparation is not a pre-season activity. It is a season.The author is Executive Director & Unit Head of SPE, Zuari IndustriiesPublished on July 18, 2026