India to Introduce Digital Sugar Tracking for Better Production Forecasts and Price Control

The Union Ministry of Consumer Affairs, Food and Public Distribution is planning to introduce a real-time system to collect monthly sugar production data from mills, aiming to improve domestic output estimates and enable timely policy interventions, The New Indian Express reported.

According to the report, estimates projected by the sugar industry’s representative bodies had indicated higher production prospects, prompting the government to permit exports and allow substantial diversion of sugar towards ethanol manufacturing.

Under the proposed digital P2 reporting format, sugar mills will be required to include an additional column recording estimated sugarcane crushing volumes and monthly projections of sugar production and availability.

The digital mechanism is expected to help authorities examine production claims more quickly using monthly data.

The government will also gather estimates from state sugar commissioners and the Ministry of Agriculture and Farmers Welfare. Combining information from these three sources is expected to provide a more reliable assessment of domestic sugar availability.

The initiative comes amid concerns over supply constraints and elevated sugar prices ahead of the festive season. Domestic sugar prices recently touched a 16-year high, prompting the Centre to permit duty-free imports of one million tonnes of raw sugar. The imported sugar is required to be processed and supplied to the domestic market by October 31, 2026. The government has also authorised exports of 800,000 tonnes.

For the 2026–27 sugar season, running from October 2026 to September 2027, the government has decided against diverting sugar for ethanol production. The decision follows concerns over deficient rainfall, reduced sugarcane acreage and expectations of lower production compared with the previous season.

Meanwhile, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has reported a timely start to the 2026–27 crushing season across major sugar-producing states.

The proposed monitoring system is expected to give policymakers a more accurate picture of production and availability, helping them make informed decisions on imports, exports and ethanol diversion during the season.