New Delhi: A sharp increase in industrial diesel prices has raised concerns across the sugar sector, with industry officials warning of higher costs and possible delays in farmer payments, Business Standard reported.
The price of industrial diesel has jumped to about Rs 112 per litre from Rs 92.68, marking a rise of Rs 19.32 per litre with immediate effect. The hike is expected to significantly raise transportation expenses for sugar mills, which depend heavily on diesel for procuring sugarcane and managing logistics.
Industry sources said mills continuing operations beyond March 20 will have to bear the additional fuel costs, putting pressure on their finances. This could affect their ability to make timely payments of the fair and remunerative price (FRP) to farmers.
In a communication to the government, the Indian Sugar & Bio-Energy Manufacturers Association highlighted the growing burden of input costs and cautioned that frequent changes in fuel prices are affecting the sector’s financial stability.
The impact is also being felt in the mining sector, where diesel accounts for a large portion of operating expenses. BK Bhatia said that diesel makes up nearly 40–50 per cent of production costs in mining operations. He warned that a price increase of around 25 per cent would have a negative impact and could lead to a chain reaction, raising costs for industries dependent on raw materials and finished products.
Experts noted that higher diesel prices may increase the cost of essential raw materials like coal and iron ore, adding pressure on sectors such as metals and infrastructure.
The latest revision follows a decision by state-run oil marketing companies to raise industrial, or bulk, diesel prices by around Rs 22 per litre, effective March 20, 2026.
