Falling sugarcane output, rising sugar prices deepen Punjab’s sugar crisis
Punjab’s sugarcane production has fallen to a six-year low, while retail sugar prices have surged around 35% within a month. Experts cite delayed farmer payments, rising cultivation costs and labour shortages, while festive demand, tighter supplies and concerns over ethanol diversion add further pressure.
Chandigarh: Punjab’s sugar sector is facing mounting pressure as sugarcane production has fallen to a six-year low while retail sugar prices have surged by around 35% in a month, raising concerns about supplies and further price increases during the festive season, Amar Ujala reported.
According to the Directorate of Cane Development, sugarcane production in the state fell to 69.1 lakh tonnes in 2025-26, down from 74.9 lakh tonnes in 2020-21. Production had risen to 75.1 lakh tonnes in both 2022-23 and 2023-24 before declining to 72.8 lakh tonnes in 2024-25.
The decline in cane output comes despite government efforts to promote crop diversification and support sugarcane cultivation. The shrinking area under cane could put additional pressure on sugar availability in the coming months, particularly as demand rises during the festive season.
Punjab Agriculture and Farmers Welfare Minister Gurmeet Singh Khuddian said the state government would continue to support cane growers by providing improved planting material, subsidised farm machinery, fertilisers, pesticides, soil-testing facilities and training.
However, agriculture expert Vinod Kumar Chaudhary, a professor at Punjab University, said delayed payments were one of the main reasons farmers were moving away from sugarcane. Rising cultivation costs and a shortage of labour for harvesting were also encouraging farmers to switch to wheat and paddy.
He said mills needed to ensure timely payments to farmers if the state wanted to retain them in sugarcane cultivation.
The fall in production is coinciding with a sharp increase in sugar prices. Trader Rahul Aneja said sugar was selling at Rs 46-48 a kg in Amritsar about a month ago, but had risen to Rs 54-56 by mid-August and around Rs 65 now. Retailers said branded sugar was selling above Rs 70 a kg.
The increase is raising costs for households and businesses, particularly sweet shops, bakeries and beverage manufacturers, as sugar demand typically rises during the festive season.
The Punjab government has also stepped up action against hoarding. Traders cannot hold more than 4,000 quintals of sugar at one location and purchased stocks cannot be kept for more than 30 days. The restrictions will remain in force until November 30.
Sugarfed chairman Navdeep Jeeda blamed the growing preference for ethanol production at private mills for contributing to tighter sugar supplies. He said government mills were prioritising sugar production, while private mills were focusing on ethanol because of higher returns.
Jeeda said Punjab had rejected a central proposal for ethanol plants under which the Centre would have funded 90% of the project cost and the state the remaining 10%.
With cane output declining, weather-related crop damage and festive demand expected to rise, farmers and traders said sugar prices could remain under pressure unless supplies improve.
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Source : ChiniMandi
