UP Falls Behind Maharashtra as India's Top Sugar Producer in 2025-26 Season
In a significant shift, Uttar Pradesh has lost its position as the country's largest sugar producer to Maharashtra during the 2025-26 crushing season. Official data reveals that UP's production dipped from approximately 91 lakh metric tonnes (LMT) in 2024-25 to over 89 LMT in 2025-26, while Maharashtra surged from around 81 LMT to about 99 LMT, according to the National Federation of Cooperative Sugar Factories (NFCSF).
Key Factors Behind UP's Sugar Production Decline
Three primary reasons have been identified for this downturn:
- Low Cane Yield and Crop Damage: Sugarcane availability for crushing in UP declined sharply from 937.63 LMT to 874.51 LMT. This shortfall is attributed to unusual temperature spikes in February followed by unseasonal rains in March, which damaged crops, particularly the widely grown Co-0238 variety affected by rot.
- Diversion to Khandsari Units: Farmers increasingly shifted cane to Khandsari units, which offered Rs 450 per quintal compared to the state's SAP of Rs 400 for early maturing varieties. This move provided quicker compensation, highlighting farmers' preference for cash certainty over official pricing systems.
- Inadequate Mill Payments: Despite government efforts to enforce timely payments, many sugar mills in UP were slow and insufficient in compensating farmers, with only around 90% of total dues cleared in 2025-26. This discouraged cane supply to mills.
Operational Impacts and Broader Consequences
The production drop led to early closures of sugar mills. For instance, the Unn sugar mill in Shamli ceased operations nearly 15 days ahead of schedule, while the Thana Bhawan mill stopped in late March due to low cane availability. Experts note that some farmers also switched to other crops, reducing overall cane acreage.
In contrast, Maharashtra saw robust participation with 541 mills in the crushing season, of which 210 have completed operations, compared to UP's 121 mills with 112 closed. Interestingly, UP's sugar recovery rate improved from 9.7% to 10.2%, surpassing Maharashtra, but this was insufficient to offset production losses.
Economic and Political Ramifications
This shift carries substantial weight as the sugar sector is a cornerstone of UP's economy, supporting millions of cane farmers and thousands of workers, particularly in western and central regions where it drives rural cash flow. The loss of the top spot could influence political dynamics, given sugar's intertwined role with agricultural livelihoods and state governance.
Industry sources warn that unless mills enhance payment speed and competitiveness, cane diversion to Khandsari units may persist, further challenging UP's sugar production capabilities in future seasons.
