Sweet Surge: India's Sugar Production Climbs 22% Amidst Economic Challenges

India's sugar production increased by 22% to 15.9 million tonnes for the 2025-26 season by January 15, driven by better cane supply and yields. Output gains were noted across major states; however, financial challenges due to rising cane prices and decreasing sugar prices threaten the industry's stability.

India's sugar production has seen a notable rise of 22% to reach 15.9 million tonnes by January 15 during the 2025-26 season. This increase is driven by improved cane supply and better agricultural yields, as reported by the Indian Sugar & Bio-Energy Manufacturers Association (ISMA).

The country's leading sugar-producing states have experienced significant output growth, with Maharashtra reporting a remarkable 51% increase, while Uttar Pradesh and Karnataka also showed substantial gains. Industry leader ISMA, however, highlighted growing concerns about financial strains faced by the sector, with cane prices rising and sugar prices falling.

As operational costs exceed sugar prices, ISMA has called for a revision of the minimum selling price (MSP) to safeguard mill finances and secure timely payments to cane farmers. The organization warned of potential payment arrears escalating if current market conditions continue.

(With inputs from agencies.)