India sugar production surges to 486 MMT in 2025-26 

INDIA – India’s sugar production has surged to 48.6 million metric tonnes (486 MMT) so far in the 2025-26 season (October-September), compared with 33.4 million tonnes at the same stage last year, according to data released by the National Federation of Cooperative Sugar Factories Limited (NFCSF). 

As of end-November, mills have produced 41.35 LMT of new sugar against 27.60 MMT during the corresponding period last season. Average sugar recovery stands at 8.51 percent, up from 8.27 percent a year earlier.  

Crushing operations are in full swing following a normal monsoon, although farmer protests in parts of Maharashtra and Karnataka have caused localised delays. 

NFCSF projects gross sugar output for the full 2025-26 season at 350 LMT. After diverting approximately 35 MMT for ethanol production under Cycle-1 allocations, net marketable sugar is estimated at 315 MMT.  

Maharashtra is expected to contribute 110 MMT, Uttar Pradesh 105 MMT, Karnataka 55 MMT, and Gujarat 8 MMT. With domestic consumption forecast at 290 MMT and opening stocks of 50 MMT, mills could end the season carrying around 75 MMT of surplus sugar. 

This inventory buildup would tie up significant capital and increase interest costs for the industry. 

To ease domestic pressure and support prices, NFCSF has requested the government to permit an additional 10 LMT of exports on top of the 15 MMT already announced. The federation argues that phased releases of Indian sugar will not depress global prices while improving mill liquidity. 

The sector continues to press for revision of the Minimum Selling Price (MSP) of sugar, unchanged at Rs 31 per kg since February 2019. NFCSF has proposed raising it to Rs 41 per kg, citing rising conversion costs, financial charges, and holding expenses.  

President Harshvardhan Patil noted that even at the proposed MSP, Indian farmers receive 75-80 percent revenue share — higher than the 60-65 percent in Brazil and Thailand, where no statutory minimum price exists.  

Recent legislation in Maharashtra and Karnataka mandates mills to share additional upside revenue with growers, directly benefiting around five crore small and marginal farmers. 

On the ethanol front, Managing Director Prakash Naiknavare highlighted a major allocation imbalance. Despite installed distillation capacity of 1,953 crore litres annually, sugar-based units received only 288.6 crore litres under Cycle-1, while grain-based distilleries were allotted 759.8 crore litres.  

NFCSF is pushing for correction in future cycles and a long-overdue increase in procurement prices for sugarcane-based ethanol to ensure viable operations for mill-attached distilleries. 

Industry leaders maintain that timely policy interventions on exports, MSP, and ethanol pricing are critical to sustaining both mill finances and farmer incomes in the current high-production cycle. 

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