India sugar output up 7%, industry seeks urgent relief

Mills report rising costs, delayed payments, and policy gaps, urging support to sustain operations and farmer incomes

India’s sugar production for the 2025–26 season has recorded a steady increase, but industry concerns over financial viability and policy support continue to intensify. According to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), sugar output reached 275.28 lakh tonnes as of April 30, marking a nearly 7% rise from 256.49 lakh tonnes during the same period last year. 

 The crushing season is now nearing its end, with only five mills still operational across the country, significantly lower than 19 mills active at this time last year. This indicates an earlier wrap-up of operations despite higher production levels, reflecting efficiency gains as well as varying regional trends.

   State-wise performance presents a mixed picture. Uttar Pradesh, the country’s largest sugar producer, recorded a decline in output to 89.65 lakh tonnes from 92.40 lakh tonnes last year, with all mills having concluded operations. 

  In contrast, Maharashtra and Karnataka reported notable growth, producing 99.2 lakh tonnes and 48.01 lakh tonnes, respectively, compared to 80.93 lakh tonnes and 40.40 lakh tonnes in the previous season.  Both states have also completed their main crushing cycles. Looking ahead, a limited special crushing season is expected in Karnataka and Tamil Nadu during June–July 2026, which could add around 5 lakh tonnes to total output. However, this additional production is unlikely to significantly alter the overall supply dynamics. Despite the higher output, the industry is grappling with mounting financial stress. 

  ISMA has urged the government to revise the Minimum Selling Price (MSP) of sugar, citing rising production costs and weak ex-mill realisations. These pressures have strained mill cash flows and delayed payments to farmers. 

  In Maharashtra alone, cane arrears stood at ₹2,130 crore as of mid-April, sharply higher than ₹752 crore a year ago.The industry body has also called for faster progress in ethanol blending, highlighting its importance amid rising crude oil prices and global uncertainties. 

  With an estimated ethanol production capacity of nearly 2,000 crore litres, ISMA has advocated a roadmap beyond the current E20 target, including higher blends and wider adoption of flex-fuel vehicles.                       

— ANI