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Informist, Monday, Dec. 1, 2025

NEW DELHI – Mills in India produced 4.13 million tonnes of sugar as of Sunday in the sugar season starting October, up nearly 50% from 2.76 million tonnes produced in the same period a year ago, according to data from the National Federation of Cooperative Sugar Factories. Sugar output rose due to higher cane yields and an improvement in sugar recovery rate to 8.5% from 8.2% last year.

"The normal monsoon and retreating rains have concluded, and sugarcane cutting operations are currently in full swing, except for some pockets in Maharashtra and Karnataka where farmers' agitations ("Rasta Roko") are underway," the federation said. As of Sunday, 424 mills were operational across the country, against 382 units last year.                                   

For the entire 2025-26 sugar season ending September, the federation has estimated sugar production to be more than 20% on year at 31.5 million tonnes, with 11.0 million tonnes coming from Maharashtra, 10.5 million tonnes from Uttar Pradesh and 5.5 million tonnes from Karnataka. Last year, India produced around 26.2 million tonnes of sugar. 

"Out of this, the expected domestic consumption is 290 LTs (29 million tonnes), and computing the opening stock of 50 LTs (5 million tonnes), it will leave a balance of approximately 75 LTs (7.5 million tonnes) in sugar mills' godowns. Blocking huge funds and mounting interest burden," the federation noted, urging for more sugar export quota. 

For the 2025-26 season, the government has allowed mills to export 1.5 million tonnes by September. The federation has urged the government to allow an additional 1.0 million tonnes of exports. This would help improve domestic market sentiment by firming domestic sugar prices, the federation said.

Meanwhile, the federation also detailed state-wise sugar production till November. Sugar production in Maharashtra has surged 264% to 1.68 million tonnes from 460,000 tonnes. Sugar production rose in the state as sugarcane crushing jumped 229% to 21.3 million tonnes and a rise in sugar recovery rate to 7.85% from 7.10%. The state had 170 mills running as of Sunday compared to 124 mills last year. 

In Uttar Pradesh, sugar production as of Sunday was 1.4 million tonnes, up from nearly 1.3 million tonnes last year. The state has 116 mills operational against 118 last year and the average sugar recovery rose to 9.3% from 8.7% last year. 

In Karnataka, sugar production stood at 820,000 tonnes up from 700,000 tonnes last year. As of Sunday, 75 mills were running against 72 units last year. The average sugar recovery rose marginally to 8.8% from 8.5% last year. 

To improve the financial health of mills, the federation urged the government to revise the minimum selling price of sugar to INR 41 per kg from INR 31 per kg. "The entire sugar sector continues to face ambiguity and uncertainty regarding the long-pending revision of the Minimum Selling Price (MSP) of sugar. There has been no revision in the last six years, despite significant increases in conversion costs, financial overheads, interest burden, holding costs, and normative returns to mills," it said. 

Citing the lower ethanol supply orders allocated to sugar-based distilleries, the federation asked the government to ensure more ethanol orders from oil marketing companies in the upcoming tenders. India has 513 distilleries with an annual distillation capacity of 19.53 billion litres, the federation said. Of this, 281 distilleries are molasses-based with an installed capacity of 8.38 billion litres. The 210 grain-based distilleries have a capacity of 9.80 billion litres, and another 22 dual feed-based distilleries have a capacity of 1.35 billion litres. 

"In contrast to this hugely invested distillation capacity in place, the ethanol allocation for the sugar sector has been merely 288.6 crore (2.88 billion) litres, while the balance 759.8 crore (7.59 billion) litres has gone to grain-based distilleries," the federation said.  End

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

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