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Informist, Thursday, Jan. 1, 2026

NEW DELHI – India's sugar production in the ongoing 2025-26 (Oct-Sept) season rose nearly 25% on year to 11.9 million tonnes as of December end, supported by higher throughput and improved operational efficiency, the Indian Sugar & Bio-Energy Manufacturers Association said Thursday. The sugar season runs from October to September. 

"India's sugar sector has continued the 2025–26 season on a confident and encouraging note, supported by ample sugarcane availability, improved on-ground productivity, and enhanced operational efficiency across key producing states," ISMA said in a release. The sector has also seen more mills running this season, at 504 units, compared with 492 units a year ago. 

Sugar output in major sugarcane-growing states also reported an on-year rise, with Maharashtra continuing to be the strong performer this season. "Field-level assessments indicate better sugarcane yields and improved sugar recovery rates across key states as crushing operations gain momentum," ISMA said. 

As of Dec. 31, Uttar Pradesh produced 3.58 million tonnes of sugar, up 9.3% on year, driven by a higher recovery rate. This is despite fewer mills running as of December end at 119 units, compared with 121 units a year ago. 

Maharashtra's sugar production surged 62% on year to 4.86 million tonnes as of December end. The state reported higher sugarcane crushing and a higher recovery rate. The state has "delivered an exceptional performance, maintaining a higher crush rate," ISMA said. The state had 197 mills running, compared to 190 units a year ago. 

Mills in Karnataka have "accelerated crushing activity", and sugar production in the state rose nearly 12% on year to 2.28 million tonnes during the same period, ISMA said.

However, Tamil Nadu and other smaller sugarcane-growing states reported a decline in output. Production in Tamil Nadu fell 4.4% on year to 86,000 tonnes and in other states fell 6.2% to 793,000 tonnes, respectively.

For the entire 2025-26 season ending September, ISMA has estimated gross sugar production to rise 16% on year to 34.35 million tonnes. Mills are estimated to divert 3.4–3.9 million tonnes of sucrose or sugar for ethanol production. According to ISMA, despite the positive production outlook, "certain structural challenges" such as depressed sugar prices, increased production costs, and low ethanol allocation need urgent resolution "to sustain sectoral health." 

"Ex-mill sugar prices in major producing states have declined significantly and are currently below the cost of production, averaging around 3,600 per quintal ( 100 kg) in Maharashtra and Karnataka," ISMA said, reiterating its demand for an upward revision in the minimum selling price of sugar from INR 31 a kilogram. 

The association also urged for higher ethanol allocations and a revision in ethanol procurement rates to improve distilleries' capacity utilisation and financial liquidity. ISMA urged the government to ensure "parity in ethanol allocations across sugarcane-based feedstocks, and provide a clear roadmap beyond the E20 blending programme."  End

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

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