India’s Sugar Output Jumps 43% in First 2 Months of 2025-26 Marketing Year

India’s sugar production surged 43% year-on-year to 4.11 million tonnes (MT) in the first two months of the 2025-26 marketing year, according to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). The sharp increase from 2.88 MT a year earlier reflects healthier cane yields and improved recovery rates across major producing states.

Crushing operations have gained momentum nationwide, supported by a rise in the number of operating factories. The marketing year runs from October to September.

State-Wise Production Trends

Maharashtra led the growth, with output soaring to 1.69 MT from 460,000 tonnes a year ago. Uttar Pradesh, India’s largest sugar-producing state, reported production of 1.40 MT, up from 1.28 MT last year.

Karnataka, the third-largest producer, saw output dip slightly to 774,000 tonnes from 812,000 tonnes due to early disruptions caused by farmer protests. Gujarat and Tamil Nadu contributed 92,000 tonnes and 35,000 tonnes respectively during the period.

Operational Expansion

The number of operating sugar factories rose to 428 this year from 376 in the same period last year, signalling robust industry activity. ISMA attributed the production surge to improved cane yields and better sugar recovery rates across key states.

Industry Demands on Pricing and Ethanol

ISMA has called for an increase in the minimum selling price (MSP) of sugar, which has remained unchanged for over six years despite rising production costs. The pan-India average cost of production has climbed to ₹41.72 per kg following recent hikes in cane prices across several states.

The industry body also urged the government to raise ethanol procurement prices to reflect higher feedstock and conversion costs. Current ethanol allocation for the sugar sector stands at 2.89 billion litres, representing just 27.5% of total allocations, leaving distillery capacity underutilised.

Production Outlook

ISMA projects net sugar production of 30.95 MT for 2025-26, excluding diversion for ethanol, compared with 26.11 MT in the previous year. The outlook reflects strong early-season performance and expectations of continued operational efficiency.

Read More: ISMA Welcomes Government’s Nod for 15 Lakh Tonne Sugar Export.

Conclusion

India’s sugar sector has started the 2025-26 marketing year on a strong note, with production up 43% in the first two months. Maharashtra’s sharp output gains and improved cane yields across states have driven the surge.

While the outlook remains positive, industry stakeholders are pressing for MSP revisions and ethanol pricing reforms to address rising costs and optimise capacity utilisation. Policy decisions in the coming months will be key to maintaining momentum in the sector.

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