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India's sugar output set to surge 18% in 2025-26, easing supply concerns
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Thursday, 06 November, 2025, 16 : 00 PM [IST]
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Our Bureau, New Delhi
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The Indian Sugar and Bio-energy Manufacturers Association (ISMA) has projected a significant rebound in India's sugar production for the 2025-26 season (October-September), estimating an 18% increase in gross output to 349 lakh tonnes (34.9 million tonnes) before diversion for ethanol.
This optimistic forecast follows an estimated production of 296.10 lakh tonnes in the current 2024-25 season and is primarily attributed to a more favorable monsoon and improved crop conditions, particularly in key growing states. Maharashtra is expected to see the most substantial jump, with production projected to rise to around 130 lakh tonnes, driven by increased acreage and better crop health. Karnataka and Uttar Pradesh are also expected to see higher output.
After accounting for an anticipated diversion of 34 lakh tonnes of sugar for ethanol production, ISMA estimates the net sugar production for the season will be approximately 309.5 lakh tonnes.
This comfortable supply scenario is expected to ensure stability in the domestic market, where consumption is pegged at around 285 lakh tonnes. Crucially, the forecast also creates a significant export opportunity. ISMA is urging the government to grant timely permission for 20 lakh tonnes (2 million tonnes) of sugar exports for the 2025-26 season.
Furthermore, the industry body has requested the government to increase the Minimum Selling Price (MSP) of sugar and revise ethanol prices to provide better returns to millers and support timely cane payments to farmers. The focus on maximizing both sugar and ethanol output highlights the industry’s dual role in both the F&B supply chain and the national biofuel program.
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