New Delhi, August 22, 2026 (Yes Punjab News)
The recent rise in sugar prices across India is primarily linked to lower sugarcane production and reduced sugar recovery rates rather than diversion of sugar for ethanol production, agriculture and sugar industry experts said on Saturday.
The experts said the government closely monitors sugar availability and maintains a balance between domestic consumption, ethanol production and exports, with consumer requirements given priority.
Prof. Narendra Mohan Agrawal, former Director of the National Sugar Institute, Kanpur, said the recent price increase may have been unexpected but should not be attributed solely to ethanol production.
“The government annually assesses sugar production and ensures that sufficient quantities are available for domestic consumption before permitting diversion for ethanol production or exports,” he told IANS.
According to Agrawal, India’s annual sugar requirement is around 280 lakh tonnes. Only surplus sugar is permitted for ethanol production or exports. During the current year, sugar equivalent to about 31 lakh tonnes was diverted for ethanol production, while around 7 lakh tonnes was exported.
India produced about 306 lakh tonnes of sugar this year and also had carry-over stocks from the previous season, he said. Under normal circumstances, the country maintains buffer stocks of 50 lakh tonnes or more to guard against unforeseen supply disruptions.
“Therefore, it would not be appropriate to blame ethanol diversion alone for higher sugar prices,” Agrawal said.
He described the ethanol programme as a major development for the sugar industry, noting that surplus production in earlier years often pushed down market prices, affecting sugar mills and delaying payments to farmers.
While exports were traditionally used to manage surplus production, fluctuating global prices and international competition often reduced their profitability. Ethanol, he said, has provided an additional avenue for the industry while supporting energy security, reducing petroleum imports and promoting cleaner fuel alternatives.
Agrawal added that the government regularly revises sugar production estimates and adjusts the quantity permitted for ethanol production accordingly. If production is projected to decline, restrictions can also be imposed on ethanol diversion and exports.
Dr Hari Om, Professor-cum-Junior Scientist at Bihar Agricultural University (BAU), Sabour, attributed the current situation partly to declining quality in sugarcane production.
He pointed to differences in crop duration and sugar recovery between northern and western and southern states. Maharashtra and Tamil Nadu generally allow sugarcane to remain in the field longer, resulting in greater sugar accumulation and higher recovery.
According to Dr Hari Om, North India is currently going through a lean crushing period. Supplies are expected to improve once the main harvesting and crushing season begins, potentially easing price pressures.
He said farmers in northern India generally sow sugarcane in April-May and harvest it after about 10-11 months. In Maharashtra, sugarcane is generally planted in October-November and remains in the field for around 13-14 months, contributing to higher recovery rates.
Tamil Nadu has an even longer crop cycle, with planting typically taking place in July-August and the crop remaining in the field for up to 18 months. This contributes to some of the country’s highest per-hectare productivity, he said.
Maharashtra’s sugar recovery rate of around 13-14 per cent is among the highest in India, according to Dr Hari Om.
He suggested that farmers in northern India could improve cane quality by considering October-November planting after the paddy harvest and adopting intercropping with wheat, mustard, lentils, gram and vegetables.
FOLLOW NOW
