The country’s sugar production has crossed 15.9 million tonne (MT) so far in the current season 2025-26 (October-September), an increase of 22% on-year, industry body ISMA said on Tuesday. The surge was mainly due to higher cane supplies and better yields.
A total of 518 mills are currently crushing sugarcane, compared with 500 during the corresponding period of the previous season, data from the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) showed.
State-Wise Surge
Sugar output in Maharashtra rose by 51% to 6.45 MT till January 15, 2026, compared with the same period in the previous season. Output in Uttar Pradesh and Karnataka grew by 8% and 13% to 4.6 MT and 3.1 MT, respectively.
Sugar production is expected to rise by 16% to 34.35 MT in the 2025-26 season, compared with the previous season due to adequate monsoon rains and higher area, as per the first advance estimate.
Liquidity Squeeze
However, the industry association said that as the season advances and sugar inventories continue to build, there are indications that cane payment arrears have begun to increase and may rise further if the current market conditions persist.
ISMA has called for an early revision of the minimum selling price (MSP) for sugar to restore financial viability and ensure timely payments to farmers. The industry has also demanded revision of sugar MSP, which has remained unchanged at `31 per kg since February 2019, while the fair and remunerative price (FRP) has increased by 29% to Rs 355 per quintal, which raised the cost of production to Rs 41.66 per kg at present.
Pointing out that an increase in sugarcane prices announced by Uttar Pradesh, Karnataka, Uttarakhand, Punjab, Haryana and Bihar over the Centre’s FRP would support farmers, ISMA said: “The widening gap between rising cane and sugar production costs and declining ex-mill sugar realisations is placing increasing pressure on mill finances and cane payment cycles.”
At present, ex-mill sugar prices in Maharashtra and Karnataka have fallen to around `3,550 per quintal, which is significantly below the current cost of production of the sweetener, according to ISMA.