India's Sugar Surge: 26.21 Million Tonne Production Milestone

India's sugar production hit 26.21 million tonnes in the 2025-26 marketing year, up 10.5% from the previous year. The rise has highlighted financial strains on mills due to increasing production costs and calls for revising the Minimum Selling Price to improve cash flow and avoid cane payment arrears.

India's sugar production has reached an impressive 26.21 million tonnes for the ongoing 2025-26 marketing year, reflecting a 10.5% increase from the same period last year, according to a report by the Indian Sugar and Bio-energy Manufacturers Association (ISMA).

This substantial output, surpassing the total production of the entire 2024-25 marketing year, suggests an industry experiencing both growth and challenges. Despite higher production figures, mills are grappling with mounting cash-flow issues amid rising production costs and stagnant ex-mill realizations, prompting calls for an upward revision of the Minimum Selling Price (MSP).

ISMA urges that a timely MSP revision is essential for maintaining market stability and ensuring timely farmer payments, especially in major sugar-producing states like Maharashtra, Uttar Pradesh, and Karnataka, where payment arrears have risen significantly.

(With inputs from agencies.)