New Delhi [India], March 17 : Sugar production in India reached 262.14 lakh tons, compared to 237.24 lakh tons during mid-March 2025, about 10.5 per cent higher, data made available by the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) showed on Tuesday.
A total of 157 factories are currently operational, versus 182 mills operating at the same time last year.
Uttar Pradesh, a key grower, has produced 81.3 lakh tons so far, almost similar to last year's production of 81.2 lakh tons.
At present, 78 mills are operational, compared to 83 mills which operated last year on the corresponding date.
Production has reached 98.46 lakh tons in Maharashtra and 46.04 lakh tons in Karnataka, compared to 78.70 lakh tons and 39.15 lakh tons, respectively, during the same period last year.
Around 26 factories are currently operating across both states, against 27 operational mills during the corresponding period last season.
Notably, some mills in South Karnataka are expected to resume operations during the special season from June/July to September 2026.
As the sugar season advances and reaches its penultimate phase, the industry continues to await an early upward revision of the Minimum Selling Price (MSP).
With production costs increasing and ex-mill realisations lagging, mills are facing mounting cash-flow pressures, leading to higher cane payment arrears, ISMA said.
In Maharashtra, arrears as of February 2026 stand at Rs 4,898 crore, compared to Rs 2,949 crore on the same date last year. A timely MSP revision aligned with current cost structures is crucial to restore mill viability, expedite farmer payments, and maintain market stability, without any additional fiscal burden on the Government.
The industry body has been flagging concerns over surplus sugar stocks and falling prices, urging the central government to revise the minimum support price (MSP) of sugar and ethanol procurement prices to protect farmers and mills.