Govt Policy Key to Sugar Price Movement

27-Nov-2025 08:57 PM

New Delhi. The Central Government has estimated a significant increase of 21 million tonnes in domestic sugarcane production during the current marketing season compared to the previous season, which is expected to lead to a significant increase in sugar production.

This means that the domestic sugar supply and availability will remain completely smooth during the current marketing season (October-September) of 2025-26, and the Ministry of Food will not have to hesitate in releasing its monthly free sale quota. In such a situation, a sharp rise in the domestic market price of sugar seems unlikely.

To reduce the stock price of the industry, the government has approved the export of 1.5 million tonnes of sugar and has assured to consider increasing the ex-factory minimum selling price (MSP) of sugar and the selling price of ethanol (for petroleum companies).

If a positive decision is taken on this issue, as expected by the industry, it could provide significant relief to sugar millers. This is also necessary. But the government also has to consider the interests of ordinary consumers.

Sugarcane crushing has begun in earnest, and sugar production is exceeding last year's. Sugar production is estimated at 34-35 million tons for the entire season.