India’s sugar sector is showing steady progress in the 2025–26 crushing season, supported by adequate sugarcane availability, improved productivity, and smooth operations across major producing states.
As of 15 January 2026, all-India sugar production reached 159.09 lakh tonnes, up nearly 22% from 130.44 lakh tonnes at the same time last year. The number of operational sugar mills also increased slightly, with 518 mills crushing this season, compared to 500 last year.
Key State-Wise Performance (as of 15 January 2026)
| State / Zone | No. of Mills | Sugar Production 2025–26 (lakh tonnes) | No. of Mills 2024–25 | Sugar Production 2024–25 (lakh tonnes) |
|---|---|---|---|---|
| Uttar Pradesh | 119 | 46.05 | 122 | 42.82 |
| Maharashtra | 204 | 64.50 | 196 | 42.71 |
| Karnataka | 74 | 31.05 | 73 | 27.45 |
| Gujarat | 14 | 3.86 | 15 | 3.73 |
| Tamil Nadu | 27 | 1.85 | 14 | 1.30 |
| Others | 80 | 11.78 | 80 | 12.43 |
| All India | 518 | 159.09 | 500 | 130.44 |
(Note: Sugar production figures are after diversion into ethanol)
Key Highlights & Industry Concerns
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Sugarcane prices have been raised by multiple states, including UP, Karnataka, Uttarakhand, Punjab, Haryana, and recently Bihar (Agreed Cane Price raised to ₹380 per quintal for early varieties).
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Despite higher cane prices, ex-mill sugar prices in Maharashtra and Karnataka have fallen to around ₹3,550 per quintal, significantly below production costs.
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This widening gap between cane costs and sugar realizations is putting mills under increasing financial and cash-flow stress, leading to delays in cane payments.
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Industry experts suggest that an early revision of the Minimum Selling Price (MSP) of sugar is critical to:
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Restore mill financial viability
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Ensure timely payments to farmers
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Maintain market stability without adding a fiscal burden on the government
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Overall, the season shows strong operational performance, but the mismatch between rising production costs and falling sugar prices remains a key challenge for mills and farmers alike.
If you want, I can also create a clean infographic-style chart comparing sugar production growth state-wise, which would make the data visually easier to understand. Do you want me to do that?
