India’s sugar industry has recorded strong growth in the 2025–26 season so far, backed by good sugarcane availability, better on-field productivity and smoother crushing operations across key producing states. However, rising sugarcane prices are emerging as a major financial concern for mills.
According to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), all-India sugar production stood at 159.09 lakh tonnes as of January 15, marking a 22 per cent increase compared to the same period last year. The industry body warned that despite higher output, mills are facing increasing operational and cash-flow pressure due to the widening gap between sugar realisations and cane procurement costs.
ISMA noted that the increase in production is partly due to a higher number of mills in operation this season. As of mid-January, 518 sugar mills were crushing cane, up from 500 mills during the corresponding period of the previous season.
The association also pointed out that some states have raised the agreed sugarcane price by around Rs 15 per quintal, adding further strain on mill finances. Industry stakeholders have cautioned that unless the imbalance between cane prices and sugar prices is addressed, the financial health of sugar mills could be adversely affected in the coming months.
