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Sugar output surges 22% to 15.9 MT, industry seeks policy support
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Thursday, 22 January, 2026, 14 : 00 PM [IST]
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Our Bureau, New Delhi
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India’s sugar production has recorded a significant rise in the 2025–26 season, with output increasing 22 per cent to 15.9 million tonnes (MT) by mid-January compared with the same period last year, according to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA).
The strong uptick in sugar output from around 13 million tonnes a year earlier has been driven by higher sugarcane supplies, improved yields and smooth milling operations across the country. As of January 15, about 518 mills were crushing cane, up from 500 during the corresponding period last season, indicating more robust operational momentum.
Maharashtra, India’s leading sugar producer, posted a remarkable 51 per cent surge in output to 6.45 MT as of mid-January. Meanwhile, Uttar Pradesh saw an 8 per cent increase to 4.6 MT, and Karnataka recorded about a 13 per cent rise to 3.1 MT underlining broad-based growth across major producing regions.
Industry experts have noted that improved field-level productivity and better availability of sugarcane have underpinned the strong performance so far in the season. With more mills operational and favourable conditions for cane crushing, the production progress reflects strong supply conditions.
Despite the output growth, the industry has raised concerns over rising cane prices and declining sugar realisations, which are placing pressure on mill finances and potentially delaying cane payments to farmers. Ex-mill sugar prices in key states such as Maharashtra and Karnataka are significantly below production costs, prompting calls for policy action.
ISMA has urged the government to consider early revision of the minimum selling price (MSP) for sugar to help restore financial viability in the sector and ensure timely remunerative payments to cane growers.
Overall, while sugar production continues to gain strong traction, balancing farmer interests, mill liquidity and market prices remains key as the season advances.
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