India’s sugar industry has delivered a robust start to the 2025–26 marketing year, with production jumping 43 per cent to 4.11 million tonnes in the first two months, according to data from the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). The increase—up from 2.88 million tonnes a year earlier—reflects healthier cane yields, improved recovery rates, and a faster ramp-up in crushing operations across major producing states.

The number of sugar mills currently operational has risen to 428, compared with 376 during the same period last year, indicating stronger industry preparedness and improved cane availability.

Uttar Pradesh, the country’s largest sugar producer, reported output of 1.40 million tonnes through November, ahead of the 1.28 million tonnes recorded a year earlier. Maharashtra delivered the most dramatic improvement, with production soaring to 1.69 million tonnes from only 460,000 tonnes in the previous year, driven by better monsoon distribution and higher-quality cane. Karnataka, despite early disruptions due to farmer protests, produced 774,000 tonnes, marginally below last year’s 812,000 tonnes. Gujarat has contributed 92,000 tonnes so far, while Tamil Nadu has produced 35,000 tonnes.

ISMA emphasised that rising input and cane procurement costs have pushed the nationwide average cost of sugar production to Rs 41.72 per kg. With the minimum selling price (MSP) unchanged for more than six years, the association is urging a revision to ensure financially viable operations for mills and timelier payments to farmers.

The industry body is also seeking higher ethanol procurement prices, arguing that current rates do not reflect the increased feedstock and conversion costs facing distilleries. For 2025–26, the allocation of 2.89 billion litres of ethanol to the sugar sector accounts for just 27.5 per cent of total allocations, resulting in underutilised capacity and constraining mills’ ability to diversify revenue streams.

ISMA has projected net sugar production of 30.95 million tonnes for the full marketing year—excluding diversion for ethanol—compared with an output of 26.11 million tonnes in 2024–25. The association expects the combination of stronger cane yields, expanded crushing, and steadier rainfall patterns to support a more stable supply outlook for the sector.