India sugar industry faces regulatory shifts and supply concerns

The Indian sugar industry is navigating regulatory changes, payment disputes, and supply concerns. In Maharashtra, the Sugar Commissionerate has warned 15 mills that they will face license denials for the upcoming crushing season if they fail to settle outstanding fair and remunerative price (FRP) dues to farmers. Currently, 30 mills in the state owe a combined Rs 194 crore.

In Uttar Pradesh, the state government reports that sugar mills have cleared over 94.86% of cane dues for the 2025-26 season, with 102 private mills completing 100% of their payments. To improve transparency, the Cane Department is implementing the e-Ganna app, allowing farmers to track their cane calendars and estimated production digitally. However, concerns are rising regarding future supply, as sugarcane acreage has declined across several major production districts in Uttar Pradesh, potentially tightening availability for the 2026-27 season.

At the federal level, the Indian government has eased sugar stockholding limits for bulk consumers from 15 days to 30 days, provided the additional stock is sourced through specific import schemes. This move aims to stabilize the market ahead of the festival season. Additionally, officials have urged wholesalers and retailers to pass on recent declines in ex-mill sugar prices to consumers to ensure retail prices align with market corrections.