India has prohibited sugar exports until September 30, a move expected to free 4-5 lakh tonnes for domestic consumption. The government cites El Nino risks that could affect 2026-27 production, aiming to strengthen next year’s buffer stock. But the abrupt export stoppage may squeeze sugar mill liquidity, especially as mills need cash for high cane payment schedules in Maharashtra and Karnataka. Overseas demand had surged after longer Brazil shipping times, and recent export volumes had jumped sharply.
A Rs 10 increase in sugarcane FRP has drawn sharp reactions on both sides. Farmers argue the revised rate is too low to cover rising costs, while sugar mills warn that payments are already under strain and could deepen arrears. The small hike is now triggering bigger questions about pricing, procurement, and whether the season’s finances can hold.
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