The National Federation of Cooperative Sugar Factories (NFCSF) has urged the government to take quick and decisive steps to support the sugar industry. The federation is specifically asking for the early announcement of a target to divert 50 lakh metric tonnes (LMT) of sugar towards ethanol production in the 2025–26 season.
Key Demands from NFCSF
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Revise the Minimum Selling Price (MSP) of sugar, as production costs have gone up to around ₹40 per kg.
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Increase ethanol procurement prices, especially for ethanol made from sugarcane juice and B-heavy molasses.
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Continue the sugar export policy, which benefits coastal states like Maharashtra, Karnataka, Gujarat, and Tamil Nadu, while helping stabilize sugar prices.
Sugar Production Update
As of May 15, the sugarcane crushing season is almost over, with only four mills still running. Sugar production in 2024–25 has dropped significantly—by 18%, from 315.4 LMT last year to 257.4 LMT this year. The drop is mainly due to:
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Less sugarcane availability
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Lower recovery rates (down from 10.10% to 9.30%)
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A decrease in total cane crushed (from 3122.61 LMT to 2767.75 LMT)
State-Wise Production Drops
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Maharashtra: 80.95 LMT (down 29.25 LMT)
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Uttar Pradesh: 92.75 LMT (down 10.90 LMT)
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Karnataka: 40.40 LMT (down 11 LMT)
Some states, like Gujarat and Uttarakhand, maintained or slightly improved their performance, while others like Tamil Nadu, Bihar, and Andhra Pradesh saw sharper declines.
Ethanol Diversion and Future Outlook
This year, only 32 LMT of sugar was diverted for ethanol, slightly short of the 35 LMT target. The main reason for the shortfall was the lack of price revision for ethanol, which made sugar production more profitable. This led to an extra 3 LMT of sugar being produced instead.
Still, sugar mills have managed to maintain healthy liquidity. Ex-mill sugar prices have remained stable at ₹3,880–₹3,920 per quintal, and mills have already paid ₹91,000 crore out of ₹1.01 lakh crore in cane dues—90% cleared within just six months.
Looking Ahead
The closing sugar stock for the season is estimated at 48–50 LMT, which is enough to meet domestic demand during October–November 2025. Thanks to a good monsoon and increased cane sowing, production is expected to bounce back strongly in 2025–26, especially in Maharashtra and Karnataka.
NFCSF’s Commitment
Harshvardhan Patil, President of NFCSF, reaffirmed the federation’s commitment to the industry’s growth:
“We remain dedicated to ensuring timely payments to farmers, stable prices for consumers, and a vibrant future for India’s cooperative sugar sector.”
