India’s sugar production as of April 30, 2026 (Sugar Season 2025–26) touched 275.28 lakh tonnes, an increase of 7 per cent over the same period last year’s 256.49 lakh tonnes, even as the industry reiterated its demand for early revision of the minimum selling price of the sweetener.

According to the trade body Indian Sugar and Bioenergy Manufacturers Association (ISMA), a total of 5 factories are currently operational, versus 19 mills operating at the same time last year.

Uttar Pradesh has produced 89.65 lakh tonnes till end-April, against the corresponding last year’s production of 92.40 lakh tonnes. All factories in the state have closed their operations this season, whereas 10 mills were operational on the corresponding date last year.

Maharashtra has produced 99.2 lakh tonnes against the same period last year’s 80.93 lakh tonnes, while Karnataka has produced 48.01 lakh tonnes against the same period last year’s 40.40 lakh tonnes. All the factories in both states have closed their operations for the main season. However, a few mills in Karnataka will also operate in the special season from June/July 2026.

Additionally, some mills in Tamil Nadu will also continue their operations in the special season.

Historically, special season operations in Karnataka and Tamil Nadu together contribute around 5 lakh tonnes of sugar production.

As the sugar season draws to a close, the industry continues to press for an early revision of the Minimum Selling Price (MSP) of sugar. Escalating production costs, coupled with subdued ex-mill realizations, are exerting significant pressure on mill cash flows and contributing to a rise in cane payment arrears.

In Maharashtra alone, cane arrears stood at ₹2,130 crore as of mid-April, sharply higher than ₹752 crore recorded on the corresponding date last season. A timely upward revision in MSP, aligned with prevailing cost structures, is critical to restore financial viability, facilitate timely cane payments to farmers, and ensure market stability — without imposing any additional fiscal burden on the Government, ISMA said.

At the same time, increasing crude oil prices and evolving geopolitical dynamics underscore the strategic importance of accelerating ethanol blending. With an estimated production capacity of nearly 2,000 crore litres (including grain-based ethanol), there is a strong case for advancing a forward-looking roadmap beyond E20 towards higher blends such as E22, E25, E27, and E85/E100. This should be complemented by an expedited rollout of flex-fuel vehicles (FFVs) and rationalisation of GST to support wider adoption and demand creation, ISMA said.

Further, the absence of a timely revision in ethanol procurement prices for sugarcane-based feedstocks, along with lower allocation to the sector, has led to a growing mismatch between installed distillation capacity and domestic off-take. This has resulted in underutilisation of capacities, leading to financial distress and erosion of revenue streams for the industry. A prompt price revision is essential to maintain feedstock parity, improve capacity utilisation, and provide long-term policy certainty to investors and industry stakeholders, enabling them to clear cane dues of farmers on time, ISMA said.

Addressing these issues through timely and calibrated policy interventions will be crucial to optimise capacity utilisation, strengthen the financial health of mills, safeguard farmer interests, stabilise domestic sugar markets, and reinforce India’s energy security and rural economy.

Published on April 30, 2026