India's sugar production has witnessed a substantial increase, rising by 18.35 percent to reach 19.50 million tonnes by January 31st of the ongoing 2025-26 season. This is according to a recent statement by the Indian Sugar & Bio-energy Manufacturers Association (ISMA). In the corresponding period of the previous season, sugar output stood at 16.47 million tonnes. The sugar season in India runs from October to September.
The surge in production is primarily attributed to increased output in key sugar-producing states, including Maharashtra, Uttar Pradesh, and Karnataka. As of January 31st, 515 sugar mills were operational across the country, slightly more than the 501 mills operating during the same period last year.
ISMA has projected a considerable overall rise in sugar production for the entire season, indicating a positive outlook for the industry. Earlier in January, ISMA had reported that sugar production had increased by 22 percent to 15.9 million tonnes by January 15th, compared to 13 million tonnes during the same period in the previous season. This earlier increase was attributed to higher cane supplies and improved yields. At that time, approximately 518 mills were operational, compared to 500 in the previous year.
Production figures from key states as of mid-January showed Maharashtra leading with a 51 percent increase to 6.45 million tonnes, up from 4.27 million tonnes the previous year. Uttar Pradesh saw an increase to 4.6 million tonnes from 4.28 million tonnes, and Karnataka's output rose to 3.1 million tonnes from 2.75 million tonnes in the prior year.
Despite the positive production numbers, ISMA has cautioned about the financial pressures on sugar mills due to rising cane prices and falling sugar prices. They noted that ex-mill sugar prices in Maharashtra and Karnataka had fallen to around Rs 3,550 per quintal, which is significantly below production costs. ISMA also warned that increasing cane payment arrears may occur if current market conditions persist and advocated for a revision of the minimum selling price (MSP) for sugar to ensure financial stability and timely payments to farmers.
