A move by the Indian government to permit mills to crush sugarcane early in the 2026-27 season and allow them to sell in October and November will help avoid the commodity’s imports.In its notification on August 14, the Directorate of Sugar and Vegetable Oils in the Department of Food and Distribution, said “in view of the prevailing market situation, sugar mills commencing production in the month of October 2026 shall be allowed to sell the quantity of sugar produced in October during the months of October and November.”Dilip S Patil, Managing Director of Samarth SSK Ltd and Co-Chairperson of the Sugar Bioenergy Forum (SBF) under the Indian Federation of Green Energy, said this would support overall market stability by regulating the orderly release of sugar into the domestic market and reducing the risk of sudden price volatility. Monetising early“By enabling mills to monetise early-season production without creating artificial shortages, the framework also helps maintain adequate domestic availability, thereby lessening the likelihood of having to resort to imports,” he said.Deepak Ballani, Director-General, Indian Sugar and Bio-energy Manufacturers Association (ISMA), said: “To a large extent, this decision along with other measures taken by the Government will help cool down or stabilise sugar prices.”In another significant development, the government issued a notification stipulating that from September 1, bulk buyers using over 10 tonnes of sugar a month cannot hold more than 15 days stock. This will be in force till November 30. The notification will cover confection and soft drink manufacturers, food processors, sweet makers and other institutional buyers. Bulk consumers would be identified based on the average monthly consumption over the past year. Such consumers buying directly or through dealers will be monitored, he said.Prices surge to record highThese developments come amid sugar prices surging in the domestic market and talk of India having to import sugar after almost a decade. In the retail market in New Delhi, sugar prices surged to a record high of ₹55.70 a kg on Thursday, up nearly 10 per cent from a week ago. Prices are up over 30 per cent since June. Besides talks of India likely to import sugar, fears over El Nino impact, higher crude oil prices and concerns over widening supply deficit have lifted sugar prices in the global market to an 18-month high. On Thursday, October raw sugar futures on the InterContinental Exchange, New York, was quoted at 17.67 US cents a pound (about $390 or ₹37.350 a tonne). White sugar prices in London are ruling at $549.90 (₹52,600) a tonne. “The landed cost of sugar will be ₹58-60 a kg. The global sugar market seems to have factored Indian imports as prices have surged in the past few days,” said Patil. No move yet on importRaw sugar was quoting near 14 cents a pound and white sugar at $411 before the current rally. “A private sugar mill in Karnataka is quoting medium sugar at ₹71 a kg, though there are no takers,” said another industry source. Sugar industry sources, who did not wish to be identified, said the Government has not decided on importing sugar. “Sugar associations such as ISMA and National Federation of Cooperative Sugar Factories (NFCSF) have sought compensation for starting crushing early next season. The government has not said anything yet,” said a source.However, another source said the August 14 notification is more than good to compensate for the loss.In a letter to the Ministry of Food, ISMA and NFCSF said early crushing will lower production and there could be a 2 per cent loss in sugar recovery. Therefore, they urged the government to compensate the mills.Ending sugar stocks during the current season ending September is projected to be 35 lakh tonnes (lt) compared with 49 lt last season. Net production is pegged at 280 lt, while consumption is expected to be 290 lakh tonnes. For the October 2025-August 2026 period, the government allocated 245.5 lt.Cane area downTaking into account that the government could allocate 24 lt for October, it will be left with 15 lt for November. If mills begin operation early, then a gap of 9-10 lt can be made up easily, sources said.“The situation looks tight. The government should consider allowing at least 1 million tonnes of either raw or white sugar imports. It should stipulate that it should reach the retail shelf in 30 days. It will help,” said Rahil Shaikh, Founder and Managing Director, MEIR Commodities.The domestic sugar industry is not in favour of imports. “However, it is for the government to take a call,” said an industry source. For the 2026-27 season, farmers have planted sugarcane on 58.31 lakh hectares (lh) against 58.62 lh a year ago. However, global agencies such as the US Department of Agriculture expect Indian sugar production to recover to around 330 lakh tonnes, including diversion for ethanol production.Published on August 20, 2026