New Delhi– India’s sugar production is expected to rise by 18% to 349 lakh tonnes in the 2025–26 season, compared to 295 lakh tonnes last year, according to initial estimates by the Indian Sugar and Bio-Energy Manufacturers Association (ISMA).
With this significant increase in production, ISMA has asked the government to:
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Allow the export of 20 lakh tonnes of sugar
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Permit the diversion of 50 lakh tonnes of sugar for ethanol production
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Increase ethanol prices, especially for ethanol made from B-molasses and cane juice
ISMA president Gautam Goel told reporters, “Since we expect higher sugar output, the government should act quickly to avoid a glut. Delays could hurt the sector, which we’ve managed to keep stable so far.”
For the current 2024–25 season (October to September), sugar production is expected to be 261 lakh tonnes, with the government allowing export of 10 lakh tonnes.
ISMA also noted that although sugarcane cultivation has only increased slightly — from 57.1 to 57.2 lakh hectares — better rainfall in key growing regions has improved both productivity and sugar recovery.
Regionally, sugar production in Maharashtra is projected to jump significantly — from 93.3 lakh tonnes last year to 133 lakh tonnes in 2025–26. Uttar Pradesh and Karnataka are also expected to report higher output.
The industry body stressed that timely decisions from the government are critical. It warned that delays in export permissions or ethanol diversion could lead to excess sugar in the market, hurting prices and creating storage challenges.
ISMA also highlighted that the industry has already invested over ₹40,000 crore to boost ethanol production capacity. This aligns with the government’s push to blend more ethanol into fuel and reduce India’s reliance on imported crude oil.
