India's Sugar Surge: Production Up, Mills Down

India's sugar production increased by 8% in SS 2025-26, reaching 274.8 lakh tons by mid-April. However, operational sugar mills have declined, indicating an approaching season end. Industry seeks a review of Minimum Selling Price due to rising costs and calls for accelerated ethanol blending to enhance energy security.

India's sugar production has surged by approximately 8% in the ongoing sugar season 2025-26, reaching 274.8 lakh tons by April 15, according to the Indian Sugar and Bio-Energy Manufacturers Association. Despite this growth, the number of operational sugar mills has dropped considerably, signaling the approach of the season's end.

In a state-by-state comparison, Uttar Pradesh's output slightly decreased to 89.26 lakh tons, while Maharashtra and Karnataka posted notable increases. Maharashtra reached 99.3 lakh tons, with Karnataka at 48.10 lakh tons. However, all mills in these states have ceased operations for the main season, though select mills in Karnataka and Tamil Nadu may resume in the special season.

The industry is advocating for an early revision of the Minimum Selling Price to mitigate rising costs and maintain financial stability. ISMA also emphasized boosting ethanol blending to counter rising crude oil prices and called for policy measures to optimize capacity and support the rural economy. The lack of ethanol price revisions, alongside LPG supply disruptions, is further pressuring the industry.

(With inputs from agencies.)