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As sugar production goes up, industry seeks to hike export by 10 LMT
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Thursday, 04 December, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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As the sugar production in India reaches 41.35 lakh tonnes, the sugar industry demands government permission to export 10 LMT more sugar.
Experts say that due to good rainfall this year, sugarcane crushing operations are in full swing in India for the 2025-26 season. As of November 30, 2025, 486 lakh metric tonnes (LMT) of sugarcane has been crushed (compared to 334 LMT last year), and 41.35 LMT of sugar has been produced (compared to 27.60 LMT last year). This means that crushing and sugar production are expected to increase significantly compared to last year.
According to data from the National Federation of Cooperative Sugar Factories Limited (NFCSF), the average sugar recovery at the end of November is 8.51%, compared to 8.27% recorded on the same date last year.
Shankar Thakkar, national secretary of the Confederation of All India Traders (CAIT), stated that the good monsoon rains and the retreating rains are over, and sugarcane crushing is currently in full swing, except in some areas of Maharashtra and Karnataka where farmers' agitations are ongoing. According to the NFCSF, total sugar production at the end of the current season (September 2026) is currently estimated at 350 LMT. Based on Cycle 1 ethanol allocation, approximately 35 LMT of sugar is expected to be used for ethanol production, resulting in a record net sugar production of 315 LMT, with the major contributing states being Maharashtra (110 LMT), Uttar Pradesh (105 LMT), Karnataka (55 LMT), and Gujarat (8 LMT).
"Of this, estimated domestic consumption is 290 LMT, and counting the opening stock of 50 LMT, sugar mills will have a balance of approximately 75 LMT in their warehouses. This will significantly block funds and increase the interest burden. Therefore, NFCSF has requested the Government of India to allow an additional 10 LMT (in addition to the previously announced 15 LMT) for export. This move will not only strengthen domestic sugar prices but will also improve the domestic market environment, as small shipments of Indian sugar are arriving in the global market, thus mitigating the current low international sugar prices," said Thakkar.
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