Sweet Surge: India's Sugar Output to Grow 15% Amid Favorable Monsoon

India's sugar output is projected to increase by 15% in sugar season 2025-26, reaching around 35 million tonnes due to favorable monsoon conditions. This growth may ease domestic supply issues, support ethanol production, and maintain current export levels, albeit with narrow profitability margins for sugar mills.

India is gearing up for a surge in sugar production, with an anticipated 15% increase in output for the sugar season 2025-26, according to a recent Crisil Ratings report.

The report highlights that elevated monsoon levels are set to boost cane acreage and yields, particularly in critical states like Maharashtra and Karnataka, potentially pushing sugar production to around 35 million tonnes.

This upturn is expected to relieve domestic supply constraints, facilitate greater ethanol exports, and bolster financial stability for sugar mills, despite persistent challenges around profitability margins and high cane costs.

(With inputs from agencies.)