Shree Renuka Sugars’ Executive Chairman Atul Chaturvedi said the sugar industry has been pushing for an increase in the minimum selling price for the past two years, especially since the sector is highly regulated.
The industry has been seeking a price closer to ₹41 per kg, particularly with the Fair and Remunerative Price (FRP) set to rise in the current or upcoming season.
However, Chaturvedi emphasised that the bigger priority is a revision in ethanol prices. He noted that while there is ongoing chatter—possibly even targeted narratives—around ethanol, the core issue is that without a price increase, India will struggle to maintain its 20% ethanol blending target.
He added that sugar availability is not a concern, as the country has adequate stockpiles and domestic consumption has fallen compared to last year. A small uptick in sugar prices is likely, supported by the government’s lower allocation of 22.5 lakh tonnes for August, but a major surge is unlikely.
He expects next year’s crop to be stronger than last year’s, with crushing likely to start earlier—possibly by the third or fourth week of October—helping to stabilise prices.
Chaturvedi also pointed out that sugar allocations till August are about 1.4 million tonnes lower than last year. Even after adjusting for the previous year’s exports to Bangladesh, the effective drop remains between 700,000 and 800,000 tonnes.
He estimates India’s sugar consumption at under 28 million tonnes, with growth now aligned only to population increase—around 1% annually, or roughly 250,000 tonnes. He believes alternative sweeteners and other substitutes are also contributing to the decline in sugar consumption.
