India sugar production jumps 22% in 2025–26 season as cane availability improves 

INDIA – India’s sugar industry has recorded a 22% increase in output in the 2025–26 season, supported by adequate sugarcane availability, improved field-level productivity and smoother operations across major producing regions, according to industry data. 

As of 15 January 2026, all-India sugar production stood at 159.09 lakh tonnes, compared with 130.44 lakh tonnes during the same period last season, reflecting a near 22% year-on-year increase, data from the Indian Sugar & Bio-energy Manufacturers Association (ISMA) showed. 

The number of operational sugar mills has also risen modestly, with 518 mills currently crushing sugarcane, up from 500 mills at the corresponding stage of the previous season. ISMA said the higher mill participation reflects improved cane availability and better operational preparedness across states. 

Uttar Pradesh, India’s largest sugar-producing state, produced 46.05 lakh tonnes of sugar by mid-January, an increase of 3.23 lakh tonnes, or around 8%, compared to the same period last year. 

Maharashtra reported a significantly higher crushing rate this season, with sugar production reaching 64.50 lakh tonnes, representing an increase of approximately 51% year on year. The state currently has 204 mills in operation, compared with 196 mills at the same time last season. 

Karnataka has also recorded stronger momentum, with sugar output rising by about 13% compared with the corresponding period of the previous season, supported by improved cane recovery and smoother mill operations. 

Overall, ISMA said the season reflects stable operational progress and a cautiously optimistic outlook for production. However, the industry body warned that rising costs are increasingly straining mill finances. 

“Following the increase in sugarcane prices by the governments of Uttar Pradesh, Karnataka, Uttarakhand, Punjab and Haryana, the Government of Bihar has also raised the agreed cane price by Rs 15 per quintal to Rs 380 per quintal (US$4.58) for early varieties,” ISMA said. 

While the revisions support farmers, ISMA noted that the widening gap between rising cane prices, increasing production costs and declining ex-mill sugar realizations is placing growing pressure on mill cash flows and cane payment cycles. 

“At present, ex-mill sugar prices in Maharashtra and Karnataka have declined to around Rs 3,550 per quintal (US$42.80), which is significantly below the current cost of sugar production,” the association said. 

As sugar inventories continue to build, ISMA said indications suggest that cane payment arrears have begun to increase and could rise further if current market conditions persist. 

“In this context, an early revision of the Minimum Selling Price of sugar, aligned with rising production costs, would be critical to restoring financial viability, ensuring timely cane payments to farmers and maintaining market stability, without imposing any additional fiscal burden on the government,” ISMA added. 

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