ISMA data shows all-India sugar production at about 275 LMT, 7% higher than corresponding period; calls for fast rollout of FFVs
India’s sugar production reached 275.28 lakh tonnes by April-end, up 7% year-on-year, with only five mills operational. Maharashtra and Karnataka output rose, while Uttar Pradesh declined. ISMA flagged rising cane arrears, urged MSP revision, higher ethanol prices, and policy support to improve mill liquidity, capacity utilisation, and farmer payments.
ISMA has released the latest sugar production data as of 30 April 2026, wherein total sugar production is at 275.28 lakh tons, compared to 256.49 lakh tons on the corresponding date last year, i.e., around 7% higher.
A total of 5 factories are currently operational, versus 19 mills operating at the same time last year.
Uttar Pradesh has produced 89.65 lakh tons, against last year’s production of 92.40 lakh tons. All factories in the state have closed their operations this season, whereas 10 mills were operational on the corresponding date last year.
Maharashtra and Karnataka have produced 99.2 lakh tons and 48.01 lakh tons, respectively, compared to 80.93 lakh tons and 40.40 lakh tons during the same period last year. All the factories in both states have closed their operations for the main season. However, a few mills in Karnataka will also operate in the special season from June/July’2026.
Additionally, some mills in Tamil Nadu will also continue their operations in the special season.
Historically, special season operations in Karnataka and Tamil Nadu together contribute around 5 lakh tons of sugar production.
The following table gives state-wise details of sugar production this year vis-à-vis last year:
| YTD | 30th April’2026 | 30th April’2025 | ||||||
| Number of Factories | Sugar Production (Lakh Tons) | Number of Factories | Sugar Production (Lakh Tons) | |||||
| ZONE | Started | Closed | Operating | Started | Closed | Operating | ||
| U.P. | 121 | 121 | 0 | 89.65 | 122 | 112 | 10 | 92.40 |
| Maharashtra | 210 | 210 | 0 | 99.20 | 200 | 199 | 1 | 80.93 |
| Karnataka | 81 | 81 | 0 | 48.01 | 80 | 80 | 0 | 40.40 |
| Gujarat | 14 | 14 | 0 | 7.20 | 15 | 15 | 0 | 8.92 |
| Tamil Nadu | 30 | 25 | 5 | 5.38 | 30 | 22 | 8 | 4.76 |
| Others | 83 | 83 | 0 | 25.84 | 88 | 88 | 0 | 29.08 |
| ALL INDIA | 539 | 534 | 5 | 275.28 | 535 | 516 | 19 | 256.49 |
(Note: Above sugar production figures are after diversion of sugar into ethanol)
As the sugar season draws to a close, the industry continues to press for an early revision of the Minimum Selling Price (MSP) of sugar.
ISMA said that escalating production costs, coupled with subdued ex-mill realisations, are exerting significant pressure on mill cash flows and contributing to a rise in cane payment arrears.
In Maharashtra alone, cane arrears stood at ₹2,130 crore as of mid-April, sharply higher than ₹752 crore recorded on the corresponding date last season. A timely upward revision in MSP, aligned with prevailing cost structures, is critical to restore financial viability, facilitate timely cane payments to farmers, and ensure market stability—without imposing any additional fiscal burden on the Government.
At the same time, increasing crude oil prices and evolving geopolitical dynamics underscore the strategic importance of accelerating ethanol blending. With an estimated production capacity of nearly 2,000 crore litres (including grain-based ethanol), there is a strong case for advancing a forward-looking roadmap beyond E20 towards higher blends such as E22, E25, E27, and E85/E100. This should be complemented by an expedited rollout of flex-fuel vehicles (FFVs) and rationalisation of GST to support wider adoption and demand creation.
Further, the absence of a timely revision in ethanol procurement prices for sugarcane-based feedstocks, along with lower allocation to the sector, has led to a growing mismatch between installed distillation capacity and domestic offtake. This has resulted in underutilisation of capacities, leading to financial distress and erosion of revenue stream for the industry. A prompt price revision is essential to maintain feedstock parity, improve capacity utilisation, and provide long-term policy certainty to investors and industry stakeholders, enabling them to clear cane dues of farmers on time.
Addressing these issues through timely and calibrated policy interventions will be crucial to optimise capacity utilisation, strengthen the financial health of mills, safeguard farmer interests, stabilise domestic sugar markets, and reinforce India’s energy security and rural economy.
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Source : ChiniMandi
