New Delhi [India], April 30 (ANI): Sugar production in India reached 275.28 lakh tonnes as of April 30 in the 2025-26 season, registering a nearly 7 per cent increase from 256.49 lakh tonnes recorded during the same period last year, according to data released by the Indian Sugar and Bio-Energy Manufacturers Association (ISMA).
As the crushing season draws to a close, only five sugar mills remain operational across the country, compared to 19 mills operating at the corresponding time last year.
State-wise trends remained mixed. Uttar Pradesh produced 89.65 lakh tonnes of sugar, lower than 92.40 lakh tonnes recorded last year, with all mills in the state shutting operations for the season, as compared to 10 operational mills last year. In contrast, Maharashtra and Karnataka reported higher output at 99.2 lakh tonnes and 48.01 lakh tonnes, respectively, compared to 80.93 lakh tonnes and 40.40 lakh tonnes in the previous season. Mills in both states have also completed operations for the main season.
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However, some mills in Karnataka and Tamil Nadu are expected to operate during the special season starting June-July 2026, which typically contributes around 5 lakh tonnes of sugar production.
Amid the close of the season, ISMA has reiterated the need for an early revision of the Minimum Selling Price (MSP) of sugar, citing rising production costs and subdued ex-mill realisations. These factors have put pressure on mill cash flows and led to higher cane payment arrears. In Maharashtra, cane arrears stood at Rs 2,130 crore as of mid-April, significantly higher than Rs 752 crore recorded during the same period last year.
ISMA said, “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.”
The industry body also highlighted the need to accelerate ethanol blending in view of rising crude oil prices and evolving geopolitical dynamics.
ISMA noted, “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.”
It further added that delays in revising ethanol procurement prices and lower allocations have led to underutilisation of distillation capacity, affecting revenues. ISMA emphasised that timely policy measures are essential to stabilise the sector, support farmers and strengthen energy security. (ANI)