India’s Sugar Production Rises 22% to 15.9 Million Tonnes in 2025–26 Season
Sugar Production: Sugar production has increased sharply due to increased sugarcane supply and better yields, with production increasing by 22% in the current season as of January 15th. However, despite the increased production, sugar prices are falling, putting pressure on mills' financial situation and indicating delays in payments to farmers. Amidst record production, will the government be able to provide relief to both mills and farmers by increasing the MSP?
Because of the rise in the availability of sugarcane, the output of sugar in India rose by 22% in the 2025-26 season, reaching 15.9 million tonnes, as of January 15th. A year ago, the increase in the output of sugar in the country was 13 million tonnes in the same period.
According to the industry body, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), around 518 sugar mills were in operation as of January 15th this year, as against 500 in the same period last year. The sugar year in the country is from October to September every year. Sugar production in Maharashtra, the country’s leading sugar-producing state, rose 51% to 6.45 million tons, as against 4.27 million tons in the same period last year. Sugar production in Uttar Pradesh rose to 4.6 million tons from 4.28 million tons. Karnataka's production increased year-on-year to 3.1 million tons, compared to 2.75 million tons in the same period a year ago.
The organization stated that sugar stocks are rising, and there are indications that sugarcane payment arrears are beginning to mount. If current conditions persist, this could increase further. ISMA has demanded an early revision of the minimum selling price (MSP) for sugar to restore financial stability and ensure timely payments to farmers.
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ISMA said rising sugarcane prices and falling sugar prices are worsening the financial situation of mills. Payments to farmers for sugarcane are being delayed. The industry body said sugar prices from mills in Maharashtra and Karnataka have fallen to around Rs 3,550 per quintal, which is much lower than the cost of production.
