Limited Benefit to Millers from Record Rise in Sugar Prices

New Delhi: The two leading organizations of India’s domestic sugar industry — the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd. (NFCSF) — have said that although sugar prices rose sharply to record levels during the second half of August, millers did not benefit significantly.

According to the industry organizations, millers sold around 7.22 lakh tonnes of sugar between August 17 and 31, 2026, at an average price of ₹4,996.98 per quintal.

They said that the volume of sales was limited and the period during which prices remained elevated was also short. As a result, other segments benefited more from the price surge, while consumers faced increased costs.

The situation remains broadly similar. Although the ex-factory price of sugar has fallen by around 30% from its peak, retail prices have declined by only 10–12%.

India consumes around 285 lakh tonnes of sugar annually. At an average price of about ₹50 per kg, the 7.22 lakh tonnes sold during the period accounted for only around 2.5% of the country’s annual sugar consumption.