Sugar production at 195 LMT; cane arrears creeping up: ISMA
ISMA data shows all-India sugar production at 195.03 lakh tonnes by January 31, 2026, up sharply year-on-year, with 515 mills operating. Maharashtra and Karnataka led growth, while cane arrears are rising, prompting ISMA to seek an early MSP revision to ease cash-flow stress and ensure timely farmer payments.
ISMA’s fortnightly production report shows that as on 31 January 2026, all-India sugar production has reached 195.03 lakh tonnes, compared to 164.79 lakh tonnes during the corresponding period of the previous season. At present, 515 sugar mills are operational across the country, slightly higher than the 501 mills in operation at the same stage last year.
State-wise performance from key producing states indicates the following trends:
• Uttar Pradesh has produced 55.1 lakh tonnes of sugar so far, marking an increase of 2.5 lakh tonnes (around 5%) over last year by end of January, supported by steady crushing operations.
• Maharashtra has reported higher crushing this season, with sugar production reaching 78.72 lakh tonnes, an improvement of nearly 42% over the same period last season. The state currently has 206 mills in operation, compared to 190 mills at the same time last year.
• Karnataka has also recorded improved crushing momentum, with sugar production increasing by about 15% compared to the corresponding period of the previous season.
The table below presents a state-wise comparison of sugar production for the current season vis-à-vis last year:
| S. No. | YTD | 31st Jan’2026 | 31st Jan’2025 | ||
| ZONE | No. of Factories | Sugar Production | No. of Factories | Sugar Production | |
| Started | Started | ||||
| 1 | U.P. | 119 | 55.1 | 122 | 52.6 |
| 2 | Maharashtra | 206 | 78.72 | 190 | 55.52 |
| 3 | Karnataka | 71 | 38.1 | 67 | 33.27 |
| 4 | Gujarat | 13 | 4.9 | 14 | 4.9 |
| 5 | Tamil Nadu | 27 | 2.52 | 25 | 1.68 |
| 6 | Others | 79 | 15.69 | 83 | 16.82 |
| ALL INDIA | 515 | 195.03 | 501 | 164.79 | |
(Note: Above sugar production figures are after diversion of sugar into ethanol)
In the press release, the Association said that it is in the process of procuring Pan-India satellite imagery to assess the remaining harvestable cane area. In parallel, ISMA’s agriculture team is visiting major sugar-producing states for on ground survey of the standing crop. Based on a detailed analysis of field conditions, satellite data, estimated yield and recovery so far and expected yield and recovery for the balance season, ISMA will release its Third Advance Estimate of sugar production in February 2026.
ISMA’s DG said that the cane payment arrears are building up. “As the season advances and sugar inventories continue to build, indications suggest that cane payment arrears have begun to show an upward trend. The industry continues to face operational and cash-flow pressures arising from the mismatch between sugar production costs and sugar realisations,” he stated.
“In this context, an early revision of the Minimum Selling Price (MSP) of sugar, aligned with rising production costs, would be critical to ensuring financial sustainability of the sector, facilitating timely cane payments to farmers, and maintaining overall market stability—without any additional fiscal burden on the Government,” Ballani said.
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Source : Chinimandi
