Crushing Season Nears Early End as 94% Sugar Mills Close in Maharashtra; Cane Shortage Hits UP

The ongoing sugar season (2025–26) is drawing to an early close, with crushing operations nearing completion across several states. By mid-March, more than 90 percent of sugar mills in Maharashtra have closed crushing, while most mills in Uttar Pradesh are operating at under capacity due to lower cane availability.

Adverse weather conditions and crop diseases have reduced sugarcane yields this season across several cane-growing regions. However, the situation remains better compared to last year.

According to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), as of March 15, a total of 379 out of 536 sugar mills across the country have closed crushing operations, while 157 mills remain operational. During the same period last year, 352 mills had closed and 182 were still operational.

India’s net sugar production, excluding diversion for ethanol, has reached 262.14 lakh tonnes as of March 15, up from 237.24 lakh tonnes a year earlier—an increase of nearly 10 percent.

Despite the year-on-year improvement, production remains below initial industry expectations. The previous season had been particularly weak, with net sugar output declining by around 18 percent to 261 lakh tonnes due to weather-related damage and disease in sugarcane crops.

ISMA had initially projected total sugar production at 343.5 lakh tonnes for the 2025–26 season in its first advance estimate released on November 4, 2025. After accounting for diversion of 34 lakh tonnes towards ethanol, net production was expected to be 309.5 lakh tonnes. However, subsequent revisions reflecting crop conditions led to downward adjustments.

In its third advance estimate released on February 25, 2026, ISMA revised total sugar production down to 324 lakh tonnes, with net production projected at 293 lakh tonnes after diversion of 31 lakh tonnes for ethanol.

With 262 lakh tonnes already produced and 157 mills still operational, total net sugar production for the season is now expected to reach around 290-295 lakh tonnes.

 (Source: ISMA, sugar production figures are after diversion of sugar into ethanol)

Uttar Pradesh Faces Cane Shortage

In Uttar Pradesh, the country’s largest sugarcane-producing state, 42 out of 120 sugar mills have closed, while the remaining mills are operating at lower capacity due to insufficient cane supply.

Data from the National Federation of Cooperative Sugar Factories (NFCSF) show that mills in the state crushed 803 lakh tonnes of sugarcane as of March 15, compared to 843 lakh tonnes during the same period last year—a shortfall of around 40 lakh tonnes.

The decline in cane availability is attributed to crop diseases, limited adoption of new cane varieties, and better price realization in alternative buyer such as jaggery and khandsari.

Interestingly, sugar recovery in Uttar Pradesh has improved to 10.15 percent this season from 9.60 percent last year. However, due to lower cane availability, sugar production has remained largely stable at around 81 lakh tonnes as of March 15, nearly unchanged from the previous season.

Initial estimates had pegged Uttar Pradesh’s sugar output at around 110 lakh tonnes, but it is now expected to settle closer to 90 lakh tonnes. Several mills are likely to shut by the end of March.

Maharashtra, Karnataka Drive Output Growth

Maharashtra has emerged as a key contributor to the rise in national output. As of March 15, the state produced 98.46 lakh tonnes of sugar, up 25 percent from 78.70 lakh tonnes last year. Out of 210 mills, 197 have already closed, and final output is expected to be around 100 lakh tonnes.

The sharp increase comes after a poor previous season when cane crops were hit by excessive rainfall and disease. This year, sugarcane crushing in Maharashtra rose to 1,036 lakh tonnes from 831 lakh tonnes last season.

Karnataka has also reported strong growth, with sugar production rising 17 percent to 46 lakh tonnes, compared to 39 lakh tonnes last year. Cane crushing in the state increased to 530 lakh tonnes from 460 lakh tonnes in the previous season.

Overall, while the 2025–26 sugar season is ending earlier than usual, improved output in key states has helped offset regional challenges, keeping production higher than last year, albeit below initial projections.

This is an alarming sign for the sustainability of the sugarcane economy in the country. For the second consecutive year, net sugar production is expected to remain below 300 lakh tonnes, despite higher acreage under sugarcane reported by the agriculture ministry.