Sugar output surges in 2025-26, prices lag behind costs
India’s 2025–26 sugar season shows strong momentum, with output up 28% to 78.25 lakh tonnes as higher cane yields boost Maharashtra, Uttar Pradesh and Karnataka. However, ex-mill prices remain below production costs, prompting industry calls for an urgent revision of the sugar MSP to protect mill viability and farmer payments.
Pilibhit: Sugar production in the ongoing 2025–26 season has shown a robust performance, driven by strong sugarcane availability and improved operational efficiency across India’s major sugar-producing states, including Uttar Pradesh, Maharashtra and Karnataka.As of Monday, all-India sugar production reached 78.25 lakh tonnes, up 28% from 61.28 lakh tonnes produced during the same period last year, with 478 mills in operation. Field-level assessments indicated higher cane yields and improved sugar recovery rates as crushing operations gained momentum.Maharashtra led production at 31.79 lakh tonnes from 187 mills, up from 16.78 lakh tonnes last year. Uttar Pradesh produced 24.56 lakh tonnes from 118 mills, compared to 23.04 lakh tonnes from 121 mills last year. IPL Auction 2026
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Meanwhile, Karnataka recorded 15.80 lakh tonnes from 74 mills, surpassing last year’s 13.85 lakh tonnes from 76 mills.In addition to three major sugar-producing states, Gujarat produced 1.82 lakh tonnes of sugar with 14 operational mills, followed by Tamil Nadu with 0.50 lakh tonnes with 11 mills. The rest of the country’s states produced 3.78 lakh tonnes of sugar with 74 operational mills.On a per-mill basis, Karnataka led with 21.35K tonnes, followed by UP at 20.81K tonnes and Maharashtra at 17K tonnes.
Despite the surge in output, ex-mill sugar prices remain below production costs, hovering around Rs 3,600–3,660 per quintal versus a cost of Rs 4,100–4,200.Deepak Ballani, director general of Indian Sugar & Bio Energy Manufacturers Association, called for an urgent revision of the sugar MSP to protect the sector’s financial viability and ensure timely cane payments to farmers. He said govt’s proactive action to simplify the MSP structure is awaited.
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Source : The Times Of India
