Domestic sugar prices are expected to remain firm in the short term, according to Triveni Engineering & Industries, a leading integrated sugar and ethanol manufacturer, which reported a 2.1% growth in net turnover (net of excise duty) at Rs 1,581 crore for Q1 FY27 (April-June). The company attributed the improvement to higher sugar margins, lower maize procurement costs, and better by-product realisation.
Q1 FY27 Sugar Sales and Realisation
During the quarter, Triveni sold 2,77,403 tonnes of sugar, up 7.4% from 2,58,196 tonnes a year ago, with an average realisation of ₹41,525/tonne against ₹40,421/tonne in Q1 FY26. The company's sugar inventory as on June 30, 2026, stood at 0.36 million tonnes (mt), lower than 0.45 mt a year earlier. The realised sugar price was ₹38.41/kg compared to ₹37.41/kg in the same period last year.
| Metric | Q1 FY27 | Q1 FY26 | Change |
|---|---|---|---|
| Sugar sales volume | 2,77,403 tonnes | 2,58,196 tonnes | +7.4% |
| Average realisation | ₹41,525/tonne | ₹40,421/tonne | +2.7% |
| Sugar inventory (June 30) | 0.36 mt | 0.45 mt | -20% |
| Realised sugar price | ₹38.41/kg | ₹37.41/kg | +2.7% |
Supply-Side Drivers: Lower Production and Exports
Triveni noted that domestic sugar prices remained firm throughout FY26 due to lower-than-expected production and further support from exports. The company attributed 0.7 mt of exports and 3 mt diversion towards ethanol during the current sugar season (October 2025–September 2026) as key factors impacting India's sugar stock. According to the company, the country's sugar stock may reach a 10-year low of 4.1 mt as on September 30, 2026, the lowest since September 2017.
“It is expected that the domestic sugar price would remain firm in the short term, particularly in the backdrop of tighter carry-over stock and expected monsoon deficit due to El-Niño leading to lower production in the coming sugar season,” the company stated. The uncertainty regarding El Niño may also adversely affect production volume in the 2026-27 season.
Demand and Ethanol Dynamics
On the demand side, the alcohol business continued its turnaround trajectory and remained a key contributor to overall profitability. The segment benefited from lower maize procurement costs, favourable feedstock economics, improved by-product (DDGS) realisation, and enhanced operating efficiencies. However, Dhruv M. Sawhney, Chairman and Managing Director, noted that “the present position of capacities outstripping demand needs to be rectified to exploit full potential of ethanol.” He expressed optimism for new policy initiatives under the 'Beyond E-20' framework, including flex-fuel vehicles and new ethanol applications, which could strengthen long-term demand for biofuels.
Price Outlook
Sawhney said that sugar prices subsequent to the quarter have significantly firmed up, in line with estimates of lower sugar inventories at the end of Sugar Season 2025-26 and due to uncertainties about the impact of El Niño on sugar production next season. “We are all focused on improvement in yields to enhance sugarcane availability and to target other controllable efficiencies,” he added.
Triveni, the second largest sugar producer in India, operates 8 sugar units (including one at Shamli via a subsidiary) and six co-generation power plants with a combined grid-connected capacity of 104.5 MW. The company's focus remains on improving cane availability, enhancing recoveries, and strengthening operational efficiencies in sugar, while capitalising on ethanol opportunities under evolving policy frameworks.
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