New Delhi [India], April 2 : India's sugar production has increased by around 9 per cent in the ongoing sugar season 2025-26, reaching 272.31 lakh tons as of March 31, 2026, compared to 248.78 lakh tons during the same period last year, according to the Indian Sugar & Bio-Energy Manufacturers Association.
The data by ISMA shows that while production has increased, the number of operational mills has declined, with 56 factories currently operational compared to 95 mills at the same time last year.
Among major producing states, Uttar Pradesh has recorded production of 87.5 lakh tons so far, which is similar to last year's output. However, only 28 mills are currently operational in the state, compared to 48 mills during the corresponding period last year.
Maharashtra and Karnataka have witnessed a notable rise in production. Maharashtra has produced 99.3 lakh tons, up from 80.26 lakh tons last year, while Karnataka's production stands at 47.90 lakh tons, compared to 39.94 lakh tons in the same period last season. At present, around 4 factories are operational across both states, against 7 mills last year.
The industry expects some mills in South Karnataka to resume operations during the special season from June/July to September 2026. Additionally, certain mills in Tamil Nadu are also expected to continue operations during this period.
As the sugar season nears its final phase, the industry has called for an early upward revision of the Minimum Selling Price (MSP).
ISMA stated, "Rising production costs, coupled with inadequate ex-mill realisations, are exerting significant pressure on mill cash flows, resulting in an increase in cane payment arrears... A timely MSP revision, aligned with current cost structures, is essential to restore mill viability".
The association also highlighted the need to accelerate ethanol blending in light of evolving geopolitical dynamics and rising crude oil import prices, which can help support the sector and enhance energy security.
At the same time, disruptions in LPG supply have impacted demand, as reduced operations and temporary closures of several food outlets have led to lower sugar consumption, further adding pressure on the industry.
ISMA emphasised that timely policy interventions will be crucial to enable the sector to fully utilise its capacity, improve financial stability, protect farmer interests, stabilise the sugar market, and contribute to India's rural economy and energy security.