Indian Sugar Production Jumps 28%, but Falling Prices Raise Alarm for Mills and Farmers
16 December 2025, New Delhi: Indian sugar production in the ongoing 2025–26 sugar season has gathered strong momentum, reflecting robust sugarcane availability and improved operational efficiency across major producing states, according to the Indian Sugar & Bio-energy Manufacturers Association (ISMA).
As on December 15, 2025, all-India sugar production stood at 78.25 lakh tonnes, registering a healthy growth of about 28 per cent over the 61.28 lakh tonnes produced during the corresponding period last year. The number of sugar mills in operation has also seen a marginal increase, with 478 mills currently crushing cane compared to 477 mills at the same time in the previous season.
ISMA said that field-level assessments point towards better cane yields and improved sugar recovery rates in key sugar-producing regions as crushing operations gain pace. The encouraging trend indicates that the current sugar season is progressing well and remains broadly on track.
Among major states, Uttar Pradesh reported sugar production of 24.56 lakh tonnes by mid-December 2025, marking an increase of 1.52 lakh tonnes over the same period last year. Maharashtra has also delivered a stronger performance, with 187 mills in operation and sugar production reaching 31.79 lakh tonnes. Karnataka, too, has recorded faster crushing progress and higher output compared to the corresponding period of the previous season, reinforcing the positive national trend.
However, ISMA highlighted growing concerns on the pricing front. Ex-mill sugar prices in major producing states have fallen significantly below the cost of production. In Maharashtra, prices are currently hovering in the range of ₹3,600–3,660 per quintal, exerting pressure on mill finances.
In this context, the association has reiterated the need for an immediate revision of the Minimum Selling Price (MSP) of sugar, aligned with the increased cost of production. ISMA stated that such a revision is critical to restore the financial viability of sugar mills, ensure timely cane payments to farmers, and support the overall sustainability of the Indian sugar sector without imposing any additional fiscal burden on the government.
With production trends remaining positive but prices under strain, the coming months will be crucial for policy support to balance farmer interests, mill viability, and market stability in India’s sugar economy.
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