Sugar output rises 9% despite fewer mills

India’s sugar production rose 9% year-on-year to 272.31 lakh tonnes as of March 31, 2026, reflecting improved output in key producing states, even as the number of operational mills declined, according to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA).

 Production during the ongoing 2025–26 sugar season stood higher than 248.78 lakh tonnes recorded in the corresponding period last year. However, only 56 mills remain operational currently, compared to 95 mills a year ago, indicating a faster closure of crushing operations this season. Among major states, Uttar Pradesh — the country’s largest sugar producer — reported output of 87.5 lakh tonnes, largely unchanged from last year. 

 However, the number of operational mills in the state dropped to 28 from 48 during the same period. Maharashtra and Karnataka led the production growth. Maharashtra’s sugar output increased significantly to 99.3 lakh tonnes from 80.26 lakh tonnes last year, while Karnataka recorded production of 47.90 lakh tonnes, up from 39.94 lakh tonnes. Currently, around four mills are operational across both states, compared to seven last year.

  The industry expects some mills in southern Karnataka and Tamil Nadu to resume operations during a special season between June and September 2026, which could support additional output. Despite higher production, the sector faces financial stress. ISMA has urged the government to revise the MSP of sugar, citing rising production costs and weak ex-mill realisations that have strained mill cash flows and increased cane payment arrears. The association also highlighted the need to accelerate ethanol blending to support the sector, especially amid rising crude oil prices and global uncertainties.