The 2025-26 sugar season in India is witnessing a remarkable surge in production, fueled by abundant sugarcane supply and enhanced mill efficiency across the nation's key producing belts. As of the latest data, the country's sugar output has registered a significant 28% year-on-year increase, marking a robust performance for the sector.
Record-Breaking Production Figures Across States
As of Monday, all-India sugar production has reached 78.25 lakh tonnes. This is a substantial jump from the 61.28 lakh tonnes recorded during the corresponding period last season. Currently, 478 sugar mills are operational nationwide. Field reports indicate that higher cane yields and improved sugar recovery rates are the primary drivers as crushing operations have picked up pace.
Leading the charge is Maharashtra, which has produced a staggering 31.79 lakh tonnes of sugar from 187 mills. This output more than doubles the state's production of 16.78 lakh tonnes from the previous year. Uttar Pradesh, another heavyweight, has contributed 24.56 lakh tonnes from 118 operational mills, showing growth compared to 23.04 lakh tonnes from 121 mills last season.
Karnataka has also posted impressive numbers, with production at 15.80 lakh tonnes from 74 mills, surpassing last year's 13.85 lakh tonnes from 76 mills.
Contributions from Other Regions and Per-Mill Performance
Beyond the top three states, other regions have added to the national tally:
- Gujarat produced 1.82 lakh tonnes from 14 mills.
- Tamil Nadu produced 0.50 lakh tonnes from 11 mills.
- The rest of India collectively produced 3.78 lakh tonnes from 74 mills.
When analyzing efficiency on a per-mill basis, Karnataka emerges at the forefront with an average output of 21.35 thousand tonnes per mill. Uttar Pradesh follows closely at 20.81 thousand tonnes per mill, while Maharashtra averages 17 thousand tonnes per mill.
Price Concerns and Industry's Call for Support
Despite the production boom, a significant challenge looms over the industry's financial health. Ex-mill sugar prices currently hover between Rs 3,600 to Rs 3,660 per quintal. Alarmingly, this remains substantially below the estimated production cost, which ranges from Rs 4,100 to Rs 4,200 per quintal.
This disparity has prompted urgent calls for policy intervention. Deepak Ballani, the Director General of the Indian Sugar & Bio Energy Manufacturers Association (ISMA), has emphasized the need for an immediate revision of the Minimum Support Price (MSP) for sugar. He argues that this step is critical to safeguard the sector's financial viability and, more importantly, to ensure that farmers receive timely payments for their sugarcane.
Ballani stated that the industry awaits proactive action from the government to simplify and revise the MSP structure, a move deemed essential for the long-term sustainability of sugar production in India.
