According to the industry association ISMA on Tuesday, the nation’s sugar production has surpassed 15.9 million tonnes (MT) thus far in the current season 2025–2026 (October–September), a 22% year-over-year rise. The increase was mostly caused by improved yields and increased cane supplies.
According to data from the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), there are currently 518 mills grinding sugarcane, compared to 500 during the same period last season.
Up till January 15, 2026, Maharashtra’s sugar production increased by 51% to 6.45 MT from the same period the previous season. Karnataka’s output increased by 13% to 3.1 MT, while Uttar Pradesh’s increased by 8% to 4.6 MT.
According to the first advance estimate, due to sufficient monsoon rains and a larger area, sugar production is predicted to increase by 16% to 34.35 MT in the 2025–2026 season compared to the previous season.
However, the industry organization noted that there are signs that cane payment arrears have started to mount and could rise even more if the current market conditions continue as the season progresses and sugar inventories continue to grow.
In order to restore financial sustainability and guarantee regular payments to farmers, ISMA has advocated for an early modification of the sugar minimum selling price (MSP). The fair and remunerative price (FRP) has increased by 29% to Rs 355 per quintal, raising the current cost of production to Rs 41.66 per kg. The sector has also called for a revision of the sugar MSP, which has been at `31 per kg since February 2019.
According to ISMA, ex-mill sugar prices in Maharashtra and Karnataka have currently dropped to about `3,550 per quintal, which is much less than the sweetener’s current production costs.
