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India's Sugar Output Jumps 10.5% to 262 Lakh Tons, Mills Seek MSP Hike

India's sugar production has increased by 10.5% to reach 262.14 lakh tons in the current season. Key producing states like Maharashtra and Karnataka have seen significant output growth compared to last year. However, the industry is facing financial strain due to rising costs and lagging ex-mill realisations, leading to higher cane payment arrears. The sugar manufacturers' association is urgently calling for a revision of the Minimum Selling Price to ensure mill viability and timely farmer payments.

Key Points: India Sugar Production Rises 10.5%, Mills Await MSP Revision

  • Production up 10.5% to 262.14 lakh tons
  • Maharashtra output surges to 98.46 lakh tons
  • Mills face mounting cash-flow pressures
  • Industry urges MSP and ethanol price revision
2 min read

India: Sugar production rises 10.5% to 262.14 lakh tons

India's sugar production hits 262.14 lakh tons, a 10.5% year-on-year rise. Mills face cash-flow pressure and urge government to revise Minimum Selling Price.

"A timely MSP revision...is crucial to restore mill viability, expedite farmer payments, and maintain market stability - ISMA"

New Delhi, March 17

Sugar production in India reached 262.14 lakh tons, compared to 237.24 lakh tons during mid-March 2025, about 10.5 per cent higher, data made available by the Indian Sugar & Bio-Energy Manufacturers Association showed on Tuesday.

A total of 157 factories are currently operational, versus 182 mills operating at the same time last year.

Uttar Pradesh, a key grower, has produced 81.3 lakh tons so far, almost similar to last year's production of 81.2 lakh tons.

At present, 78 mills are operational, compared to 83 mills which operated last year on the corresponding date.

Production has reached 98.46 lakh tons in Maharashtra and 46.04 lakh tons in Karnataka, compared to 78.70 lakh tons and 39.15 lakh tons, respectively, during the same period last year.

Around 26 factories are currently operating across both states, against 27 operational mills during the corresponding period last season.

Notably, some mills in South Karnataka are expected to resume operations during the special season from June/July to September 2026.

As the sugar season advances and reaches its penultimate phase, the industry continues to await an early upward revision of the Minimum Selling Price (MSP).

With production costs increasing and ex-mill realisations lagging, mills are facing mounting cash-flow pressures, leading to higher cane payment arrears, ISMA said.

In Maharashtra, arrears as of February 2026 stand at Rs 4,898 crore, compared to Rs 2,949 crore on the same date last year. A timely MSP revision aligned with current cost structures is crucial to restore mill viability, expedite farmer payments, and maintain market stability, without any additional fiscal burden on the Government.

The industry body has been flagging concerns over surplus sugar stocks and falling prices, urging the central government to revise the minimum support price (MSP) of sugar and ethanol procurement prices to protect farmers and mills.

- ANI

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Reader Comments

S
Sarah B
Interesting data. A 10.5% increase is significant, but with fewer factories operating, it suggests improved efficiency or higher yield per mill. The focus should be on sustainable practices and ensuring the supply chain benefits everyone from farmer to consumer.
P
Priyanka N
Maharashtra's production jump from 78.70 to 98.46 lakh tons is impressive! However, the arrears have nearly doubled. This is worrying. Higher production means little if the farmers are left waiting for their money. Hope the authorities act fast.
A
Aman W
Good news for our economy and exports. But we must balance this with the ethanol blending programme. Using surplus sugar for ethanol can help stabilize prices and reduce our oil import bill. A win-win if managed properly.
K
Kavya N
As a consumer, I hope this increased production leads to stable or slightly lower sugar prices in the market. With the rising cost of everything, every little bit helps the common man's kitchen budget.
V
Vikram M
The data shows a mixed picture. While production is up, the financial health of the mills seems strained. The call for an MSP revision is justified, but it must be done carefully to avoid inflation. A delicate balance is needed.

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