Representational file image.
| Photo Credit: Reuters
Farmers’ leader and former MP Raju Shetti on Wednesday (October 7, 2026) alleged that sugar mill owners have been attempting to start mills for crushing at higher sugar price and ethanol purchase price, accusing them of falling to pressure of the ruling government and fear of ED and CBI probes.
“Government is scared that the price of sugar may got to ₹100 due to shortage. I ask why should farmer and mill owners bear the loss,” said Mr. Shetti, alleging that sugar mill owners, to escape ED inquiries and keep the government happy, have been desperate to start the mills.
He warned mill owners not to start mills before November, saying that till the MSP of sugar is not hiked to ₹50, ethanol price to ₹70, and sugarcane MSP to ₹5,000, the mills are to be kept shut.
“Despite hike in petrol price, the ethanol price remains same, this is loss to owners, while crushing immature cane with only eight per cent recovery will reduce both recovery and weight, causing farmers a heavy loss per acre,” he said warning of a kata bandh (weighbridge shutdown) agitation if any of the mills open.
Mr Shetti has objected to early crushing as the Fair and Remunerative Price (FRP) of sugarcane for the sugar season 2026-27 (October – September) has been set at ₹365/quintal by the government at a basic recovery rate of 10.25%. He was referring to the Centre’s advice for sugar mills to begin crushing from October 15, 2026. According to a PIB-issued statement, this is expected to raise October sugar production from the usual 3-4 lakh MT to more than 10 lakh MT, improving availability during the festive season.
He highlighted that the crushing season should begin only after November 15, as recovery is good in November, December and January and said, “The Centre is forcing mill owners to bring new sugar to the market ahead of festival season”. He was speaking to the media in Kolhapur district of Maharashtra.
India produces around 300-340 lakh MT of sugar annually, with domestic sugar consumption being around 280-290 lakh MT annually. The sugar prices have increased from ₹48.18 per kg on July 20, 2026, to ₹55.70 per kg on August 20, 2026, with the Centre citing lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugarcane crop, tightening global sugar supplies and rising prices, speculation and hoarding by some sections of the industry as reasons for the price hike. It has denied diversion of sugar for ethanol blending as a reason.
Sugar production during the current season is expected to be around 306 LMT, compared to the initial estimate of around 343 LMT.
“We do not accept that farmers and mill owners should bear the loss while the Centre secures sugar for the market,” he reiterated.
Published – October 08, 2026 02:01 am IST
