Sugar output rises 8% to 274.8 lakh tonnes; industry flags MSP, ethanol policy gaps

India’s sugar production has reached 274.8 lakh tonnes as of April 15 in the ongoing 2025–26 season, up 8 per cent from 254.96 lakh tonnes a year ago, even as the crushing season nears closure with just 19 mills still operational compared to 38 last year.

Data from the Indian Sugar & Bio-Energy Manufacturers Association shows mixed state-level trends. Uttar Pradesh has seen a slight dip in output to 89.26 lakh tonnes from 91.10 lakh tonnes last year, with only six mills still running.

In contrast, Maharashtra and Karnataka have driven growth, producing 99.3 lakh tonnes and 48.10 lakh tonnes respectively, both significantly higher year-on-year, with their crushing seasons already concluded. Tamil Nadu continues limited operations with marginally higher output at 5.25 lakh tonnes.

While higher output has ensured comfortable availability, the industry has raised concerns over rising costs and weak ex-mill prices, which are straining cash flows and delaying payments to farmers. It has sought an early revision of the Minimum Selling Price (MSP) to align with current cost structures.

At the same time, the sector is pushing for faster progress on ethanol blending, urging the government to move beyond E20 targets amid rising crude prices. However, stagnant ethanol procurement prices and lower allocations have led to underutilised capacity and inventory build-up. LPG supply disruptions have further impacted consumption, adding to pressure on the sector.