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Key Points

India's sugar production is projected to grow 18% next season, reaching 34.9 million tonnes. Exports could hit 2 million tonnes if the government grants timely permissions. More sugar will be diverted to ethanol production, supporting the petrol blending program. Higher yields and good monsoons are driving the optimistic forecast for top-producing states.

Key Points: India Sugar Output to Jump 18% Next Season Exports May Hit 2 Million Tonnes

  • Sugar output to surge in UP Maharashtra and Karnataka due to better yields
  • Ethanol diversion may rise to 5 million tonnes next season
  • ISMA seeks timely export permits for 2 million tonnes
  • Higher MSP for ethanol and sugar expected to support farmers
2 min read

India's sugar production to rise 18 pc YoY, exports likely to touch 2 million in next season

India's sugar production is set to rise 18% YoY to 34.9 million tonnes in 2025-26, with exports likely reaching 2 million tonnes as per ISMA forecast.

"The sugar production is estimated to be higher at 34.90 million tonnes with upward bias - Gautam Goel, ISMA President"

Mumbai, Aug 1

India's sugar production is projected to rise 18 per cent to 34.90 million tonnes in the 2025-26 season starting in October, according to a forecast released by the Indian Sugar and Bio-energy Manufacturers Association (ISMA).

The increased production will take Indian sugar exports to 2 million tonnes between October 2025 and September 2026.

In the current 2024-25 season (October-September), ISMA estimated sugar production at 26.10 million tonnes. "The sugar production is estimated to be higher at 34.90 million tonnes with upward bias," said ISMA President Gautam Goel.

About 5 million tonnes of sugar can be diverted next season for ethanol production compared with 3.5 million tonnes in the current season, he added.

The government has allowed exports of 1 million tonnes in the current season. ISMA had earlier urged the government to continue with the restrictions on ethanol imports, as the measure has spurred India’s petrol blending program. This spur, in turn, facilitated the timely payment of wages to sugarcane farmers.

Goel said the industry body will seek "timely" permission for 2 million tonne sugar exports, increased diversion for ethanol. The industry also expects higher minimum selling prices for sugar and ethanol derived from B molasses and cane juices, he added.

Approximately 27 lakh tonnes of sugar have been diverted for ethanol production up to April 30, 2025, during the current season. An additional 6 to 7 lakh tonnes are expected to be diverted over the remaining season, according to ISMA data.

For the 2025-26 season, ISMA forecasts higher sugar output in the top-producing states: Uttar Pradesh at 10.25 million tonnes, Maharashtra at 13.26 million tonnes, and Karnataka at 6.61 million tonnes.

The output is estimated to increase due to higher cane yields, improved sugar recovery rates and increased acreage due to good monsoon.

aaron/na

- IANS

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Reader Comments

P
Priya S
While increased production is good, I hope the government monitors domestic sugar prices carefully. Last time exports increased, we saw prices shoot up in local markets. The common man shouldn't suffer for export profits.
A
Aditya G
Maharashtra and UP leading as always in sugar production! 🎉 This shows how our agricultural sector is growing. The ethanol blending initiative is brilliant - reducing pollution and saving foreign exchange. Make in India in action!
S
Sarah B
Interesting to see how climate factors like monsoon are directly impacting production. Hope the government invests more in irrigation so we're not completely dependent on rains. The ethanol program seems promising for sustainable energy.
K
Kavya N
As someone from a farming family, I welcome this news but request the government to ensure timely payments to farmers. Often we hear about sugar mills delaying payments. Production increase is meaningless if farmers don't benefit directly.
M
Michael C
The numbers look impressive but I'm concerned about water usage in sugar cane cultivation. With many parts of India facing water scarcity, shouldn't we be diversifying crops? The ethanol program is good but sustainability is key.

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