The National Federation of Cooperative Sugar Factories (NFCSF) has urged the Indian government to stabilize domestic sugar prices as production is expected to rise sharply this season. The federation is demanding an increase in the sugar export quota and the diversion of an additional five lakh tonnes of sugar toward ethanol production. These measures are intended to absorb excess market supply and prevent mill margins from eroding further.
Millers have expressed concern that current ex-mill prices do not reflect rising production costs, including higher cane prices and energy expenses. This financial stress is creating a liquidity crisis, particularly for co-operative factories, which could delay payments to sugarcane farmers. The industry argues that timely government action is essential to safeguard the interests of both mills and rural farming communities.
The Indian Sugar & Bio-energy Manufacturers Association (ISMA) confirmed that current production trends are strong due to robust sugarcane availability and improved operational efficiency. However, this surplus has led to depressed domestic prices. Stabilizing the market through exports, ethanol diversion, and a revision of the minimum selling price (MSP) is seen as a critical priority for the ongoing 2025-26 season.