Sugar mill owners to start crushing soon fearing ED probe: Farmers’ leader Raju Shetti

Representative file image. | Photo credit: Reuters

Farmer leader and former MP Raju Shetti on Wednesday (Oct 07, 2026) alleged that sugar mill owners were trying to start crushing mills at higher price of sugar and purchase price of ethanol, accusing them of succumbing to pressure from the ruling government and fearing ED and CBI investigations.

“The government is afraid that the price of sugar may touch ₹100 due to the shortage. I question why farmers and mill owners should bear the loss,” Mr. Shetti said, alleging that to escape the ED probe and to keep the government happy, sugar mill owners were desperate to start the mills.

He warned the mill owners not to start the mills before November and said that till the sugar MSP is raised to ₹50, ethanol price to ₹70 and sugarcane MSP to ₹5,000, the mills will remain closed.

“Despite the increase in petrol price, the price of ethanol remains the same, it is a loss for the owners, while crushing immature cane with only eight percent recovery will reduce the recovery as well as the weight, causing a big loss per acre to the farmers,” he said warning of a kata bandh (scale shutdown) riot if any of the factories open.

Mr. Shetti objected to the early crushing as the fair and profitable price (FRP) of sugarcane for the 2026-27 (October-September) sugar season has been fixed by the government at ₹365/quintal at a base yield of 10.25%. He cited the Centre’s advice to sugar mills to start crushing from October 15, 2026. According to a statement issued by the PIB, this is expected to increase October sugar production from the usual 3-4 lakh MT to over 10 lakh MT, improving availability during the festive season.

Stressing that the crushing season should start only after November 15 as the recovery is good in November, December and January, he said, “The Center is forcing the mill owners to bring new sugar in the market before the festival season”. He was speaking to the media in Maharashtra’s Kolhapur district.

India produces around 300-340 lakh MT of sugar annually, while the domestic consumption of sugar is about 280-290 lakh MT annually. Sugar prices rose from ₹48.18 per kg on 20 July 2026 to ₹55.70 per kg on 20 August 2026, with the center citing lower-than-expected domestic production, increased demand ahead of the festive season, damage to the sugarcane crop due to weather, tightening of global sugar supplies and rising prices. hike. He rejects as a reason the misuse of sugar to mix ethanol.

Sugar production during the current season is expected to be around 306 LMT, compared to the original estimate of around 343 LMT.

“We do not accept that farmers and mill owners should bear the loss while the center provides sugar for the market,” he reiterated.

Published – 8 Oct 2026 02:01 AM IST