India’s sugar production has increased sharply in the ongoing 2025–26 season, reaching 195.03 lakh tonnes as of January 31, driven by higher output in key producing states such as Maharashtra, Uttar Pradesh, and Karnataka, according to the Indian Sugar & Bio-energy Manufacturers Association (ISMA).
The industry body said production during the same period last season stood at 164.79 lakh tonnes, reflecting a year-on-year growth of about 18.35 per cent. The sugar season runs from October to September.
Crushing operations are currently underway in 515 sugar mills across the country, marginally higher than the 501 mills operating at the same time last year. ISMA noted that production levels so far reflect the combined impact of regional variations in cane availability, field conditions, and mill operations.
State-wise performance
Maharashtra, the country’s largest sugar producer, reported a strong recovery this season. Sugar output in the state rose nearly 42 percent to 78.72 lakh tonnes, compared to 55.52 lakh tonnes in the corresponding period last year. The number of operational mills in Maharashtra increased to 206 from 190 a year ago.
Uttar Pradesh, the second-largest producer, recorded sugar production of 55.1 lakh tonnes, around 5 percent higher than last year’s 52.6 lakh tonnes, supported by steady crushing operations.
Karnataka also posted improved performance, with sugar production reaching 38.1 lakh tonnes, up about 15 percent over the same period last season.
Gujarat and Tamil Nadu reported stable to moderately higher output, while production in the “others” category declined slightly.
Financial stress and MSP demand
As the season advances and sugar inventories continue to build, ISMA cautioned that cane payment arrears have begun to show an upward trend. The industry continues to face operational and cash-flow pressures arising from the mismatch between sugar production costs and sugar realizations.
“In this context, an early revision of the Minimum Selling Price (MSP) of sugar, aligned with rising production costs, would be critical to ensuring financial sustainability of the sector, facilitating timely cane payments to farmers,” the association said. It added that such a move could help maintain overall market stability without imposing any additional fiscal burden on the government.
Sugar Production for the Current Season Vis-à-Vis Last Year
|
S. No. |
YTD |
31st Jan’2026 |
31st Jan’2025 |
||
|
ZONE |
No. of Factories |
Sugar Production |
No. of Factories |
Sugar Production |
|
|
Started |
Started |
||||
|
1 |
U.P. |
119 |
55.1 |
122 |
52.6 |
|
2 |
Maharashtra |
206 |
78.72 |
190 |
55.52 |
|
3 |
Karnataka |
71 |
38.1 |
67 |
33.27 |
|
4 |
Gujarat |
13 |
4.9 |
14 |
4.9 |
|
5 |
Tamil Nadu |
27 |
2.52 |
25 |
1.68 |
|
6 |
Others |
79 |
15.69 |
83 |
16.82 |
|
ALL INDIA |
515 |
195.03 |
501 |
164.79 |
|
(Note: Above sugar production figures are after diversion of sugar into ethanol)
Assessment and outlook
ISMA said it is procuring pan-India satellite imagery and conducting field surveys across major sugar-producing states to assess the remaining harvestable cane area. Based on satellite data, crop conditions, yield, and recovery trends, the association will release its Third Advance Estimate of sugar production in February 2026.