DATAGRO BREAKING NEWS
India Decides to Bring Forward the Start of the 26/27 Crushing Season
● Both ISMA and NFCSF stated this morning that the Indian sugar industry has collectively decided to start the 26/27 cane crushing season approximately 10 to 15 days earlier than the normal schedule.
● This decision aims to tackle rising sugar prices in the domestic market amid fears of a shortage before November, when mills normally kick off crushing operations.
● In one month, sugar prices in Kolhapur (MH) rose 16.1% to an all-time record of INR 46,500/mt (US$ 488.82/mt), equivalent to US$ 22.49 c/lb FOB raw sugar.
● Indian sugar mills may secure stocks in the short term by bringing forward the start of operations, but not without long-term consequences: losses in industrial and agricultural yields, threatening final sugar output in the 26/27 crop.
● Perhaps India will avoid importing sugar in 2026 in order to curb rising prices, but this discussion is likely to resurface as mills are expected to close the 26/27 crop earlier than usual, alongside the prospect of a smaller harvested area in 27/28.