Crushing season progresses, ensuring uninterrupted supply

India’s sugar production in the ongoing 2025–26 Sugar Season (SS) has reached 225.06 lakh tons as of February 15, 2026, compared with 197.35 lakh tons produced during the corresponding period last year, reflecting a strong year-on-year increase.

A total of 456 sugar factories are currently operational across the country, compared to 460 mills operating at this time last season. The steady pace of crushing indicates stable supply dynamics as the season advances.

Uttar Pradesh has produced 66.27 lakh tons of sugar so far this season, an increase of 2.23 lakh tons (approximately 3 per cent) over the 64.04 lakh tons produced by mid-February last year. The state currently has 111 mills in operation, compared to 119 during the same period in 2025.

Maharashtra and Karnataka have recorded significant gains this season. Production in Maharashtra stands at 89.72 lakh tons, substantially higher than 68.22 lakh tons produced last year by mid-February, while Karnataka has produced 40.65 lakh tons compared with 35.80 lakh tons during the corresponding period last season. Across these two states, about 55 factories have closed operations so far, compared to 58 closures during the same period last year. Certain factories in South Karnataka are expected to recommence operations during the special crushing season scheduled between June/July and September 2026, which may further augment overall output.

On an all-India basis, 534 factories have started operations this season compared with 532 last year, 78 factories have closed so far compared with 72 last year, and 456 factories remain operational against 460 during the corresponding period of the previous season. Total sugar production stands at 225.06 lakh tons, as against 197.35 lakh tons last year. (These figures are net of sugar diverted for ethanol production.)

The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has procured satellite imagery of standing cane crops across the country to assess the remaining harvestable area. Based on detailed field condition analysis, satellite data, recovery trends, and expected yields for the balance season, ISMA will shortly release its Third Advance Estimate for sugar production for the 2025–26 season.

As the crushing season progresses and inventories continue to build, the industry remains in anticipation of an early upward revision of the Minimum Selling Price (MSP) of sugar. With production costs rising and ex-mill realizations not keeping pace, the widening gap has intensified cash-flow pressures across mills, contributing to an upward trend in cane payment arrears. A timely upward revision of MSP, aligned with current cost structures, would be instrumental in restoring financial viability, enabling mills to clear farmers’ dues promptly, and ensuring overall market stability—without entailing any additional fiscal burden on the Government.