Indian Sugar Prices Recover Across Ex Mill and Spot Markets as Policy and Supply News Shift Balance

• Kolhapur S grade sugar firmed from 4,840 to 5,000 rupees per quintal between October 23 and 24
• Muzaffarnagar M grade climbed from 5,120 to 5,360 rupees per quintal over the same window
• Delhi M30 destination spot moved from 5,439 to 5,670 rupees per quintal by October 24
• The Union government barred sugar diversion to ethanol production for 2026 to 2027
• India raw sugar imports rose about 33 percent in August with European suppliers gaining share

Indian domestic sugar markets staged a sharp recovery during the third week of October 2026, with ex mill and destination prices firming by 160 to 200 rupees per quintal across major producing states by October 24 after softer readings earlier in the week. On October 23, prices had already shown signs of recovery, firming by 40 to 60 rupees per quintal following three to four sessions of pressure. Kolhapur S grade sugar moved from 4,840 to 4,900 rupees per quintal on October 23 to 5,000 to 5,060 rupees by October 24, while Muzaffarnagar M grade jumped from 5,120 to 5,250 rupees to 5,200 to 5,360 rupees across the same window.

Ex mill prices across the main sugar producing states firmed broadly through the two day window. Maharashtra S30 climbed from 4,840 to 5,000 rupees per quintal and M30 from 4,900 to 5,060 rupees. South Karnataka S30 held in a range of 4,800 to 5,025 rupees on October 23 and 4,825 to 5,025 rupees on October 24, with M30 steady at 5,050 rupees across both days. Uttar Pradesh M30 climbed from 5,120 to 5,250 rupees on October 23 to 5,200 to 5,360 rupees by October 24. Punjab M30 held at a wide 5,700 to 6,200 rupee range, reflecting the premium that persists for the state’s specialty mill output.

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Destination spot prices followed the ex mill move. By October 24, Delhi M30 spot had climbed from 5,439 rupees per quintal on October 23 to 5,670 rupees. Kanpur rose from 5,460 to 5,670 rupees, Kolkata from 5,355 to 5,565 rupees, Muzaffarnagar from 5,355 to 5,617.50 rupees, and Chennai from 5,670 to 5,775 rupees. The recovery came despite broader market sentiment remaining soft on continued post festive demand slowdown.

Policy and supply news reshaped the sentiment picture. The Union government confirmed that it has barred diversion of sugar to ethanol production for the 2026 to 2027 sugar year, pointing to a planned uplift in sugar availability. India raw sugar imports jumped about 33 percent in August as European suppliers gained share, and 65 Maharashtra sugar mills began crushing operations even as farmer protests continued and drought concerns weighed on cane availability in parts of the state. Rajasthan said it would introduce sugar awareness boards in schools, pointing to the longer term consumer trend toward reduced added sugar intake.

International markets stayed firm but mixed. London white sugar No 5 front month was quoted at about 539.80 dollars per tonne and New York No 11 raw sugar front month at about 20.34 cents per pound on October 23. For procurement teams in food, beverage, confectionery, pharmaceutical, and institutional kitchen supply chains, the near term action is to lock in November and December sugar coverage while Indian ex mill prices sit below 5,100 rupees per quintal for S grade material. Food companies and quick service kitchens should run their cost models against a scenario where November crushing picks up in Maharashtra, Karnataka, and Uttar Pradesh and keeps destination prices in a 5,500 to 5,800 rupee per quintal band.