Official data show the average sugar price in Delhi was ₹49/kg on August 12.
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The Centre should come forward to disclose the estimated stock after its fortnight-long physical verification may help check current price rise, said a leading industry leader. The demand comes amid speculation of sugar stock at the end of current season on September 30 falling to about 35 lakh tonnes (lt), which is inadequate to meet the demand in first two months (October-November) of the next season,Pointing out that the information on sugar stock has reached all the stakeholders and there has been overselling of sugar against the allotted quota, Prakash Naiknavare, Managing Director of National Federation of Cooperative Sugar Factories (NFCSF), attributed both these factors to the price rise. However, he also highlighted that the wholesale price has come down to about ₹46/kg from about₹48 after the stock holding limit was imposed.“One is the perceived scarcity of sugar, based on fundamentals, has been understood by all the stakeholders - consumers, producers, farmers, traders, and government. Besides, the likely impact of Super El Nino on the crop. Third, the market is a little disturbed due to overselling of quota,” Naiknavare told businessline.Unnatural spikeThe All-India average prices of sugar have increased 8 per cent in retail market and 7 per cent in wholesale market in the past month, according to Consumer Affairs Ministry data. However, actual increase is even higher in the national capital region of Delhi and other places – ₹55-56/kg now from about ₹46-48/kg a month ago. Official data show the average sugar price in Delhi was ₹49/kg on August 12.“This is not a very natural spike, though it was expected in the months to come, not now,” he said.Sensing that there may be lower sugar available with mills, the government on July 24 announced to conduct physical verification of stock in every mill and complete the exercise by August 14. Besides, stock limit was also imposed on July 28 prescribing maximum 400 tonnes of sugar that traders can keep at any point of time till November 30.Tight supplies in NovThe NFCSF’s MD also said that the government should come out with the number after this physical verification report. “Starting next week, the government, may come out with an official number about sugar stock. This is very crucial to avoid further speculation,” he said.The government has requested mills to start crushing operation early in October so that at least 15 lakh tonnes (lt) could be produced against about 5 lt normally processed. Millers have asked the government to announce some incentives so that financially it becomes viable for them to start mills due to lower than normal recovery of cane juice.Stating that net sugar production in current season seen at 279 lt, he said there will be adequate sugar for October since the demand in the first month of the season is about 24 lt. However, it will be a bit tight in November, he said.Move to curb ethanol diversion?Stressing that mills in Karnataka normally start early, Naiknavare said if rest of the mills start on October 15, fresh sugar plus the balance (carryover from current season) should help tide over the November situation and after December, the new sugar will flow well in the market.After the physical verification is completed, the first action of the government is likely to take is to regulate diversion of sugar (in terms of sucrose) to ethanol as the top priority has always been to ensure domestic availability of sugar. Against an estimated 24 lt of sugar likely to get diverted for ethanol in current season (October-September), down from 34 lt in 2024-25, industry experts rule out any scope for the biofuel during 2026-27.The government needs to inform the sugar mills in advance if it wants to restrict use of sugarcane juice or B-heavy molasses for ethanol production, industry leaders said, adding an announcement is expected by this month-end.In sugar season 2022-23, 43 lt sugar was diverted to ethanol and in 2023-24, 24 lt went for the biofuel production.Published on August 13, 2026
