Archive · 20 Nov 2025
India Boosts Sugar Exports, Considers Price Hike Amidst Production Surge
India is making much more sugar this year!
Many more sugar factories have started working, and they're getting more sugar out of the sugarcane.
This is great for the country's sugar supply.
However, the sugar factories are worried because the price they can sell sugar for hasn't changed in a long time.
Also, the money they get for making fuel from sugar hasn't gone up either.
This makes it hard for them to pay the farmers for the sugarcane and cover their own costs.
They're asking the government to let them sell sugar for a higher price and to pay them more for the fuel.
The farmers, on the other hand, want to be paid more for their sugarcane.
The factories say they support the farmers but need help from the government to earn enough money to pay everyone.
Some help is expected from exporting sugar and making fuel from it.
India's sugar production increased by 48% to 10.50 lakh tonnes by November 15, 2025.
More mills started crushing, leading to higher sugarcane crushing and a production surge.
The average juice recovery rate improved to 8.2% from 7.8% in the previous season.
The sugar industry seeks a revision in the Minimum Selling Price (MSP) of sugar and higher ethanol prices.
Despite increased production, mills face financial pressure due to rising costs and fixed selling prices.
- Who
- Indian sugar mills and the National Federation of Cooperative Sugar Factories (NFCSF), along with the Union Food and Consumer Affairs Minister Pralhad Joshi.
- What
- India's sugar production has increased significantly, and the industry is seeking a revision in the Minimum Selling Price (MSP) of sugar and higher ethanol prices.
- When
- The report covers the period until November 15, 2025, for the current sugar season which began on October 1, 2025. The export opportunity window is from January to April.
- Where
- India, with a focus on Maharashtra, Uttar Pradesh, and Karnataka as major sugar-producing states.
- Why
- The increase in production is attributed to more mills commencing crushing operations and achieving higher juice recovery rates. Challenges in the industry stem from the unchanged Minimum Selling Price (MSP) of sugar and stagnant ethanol prices.
Industry Concerns
Farmer Support
Pricing and Revenue
Industry Concerns
Sugar mills are in a 'semi-depression' state due to the Minimum Selling Price (MSP) of sugar being fixed at Rs 31/kg since 2019 and stagnant ethanol purchase prices for three years. They need revision in MSP and higher ethanol prices to pay cane prices, meet operational costs, and clear dues.
Farmer Support
The expectation of higher cane prices from farmers is logical and supported by farmer-centric organizations. However, for sugar millers to generate adequate revenue to meet these expectations and operational costs, an increase in MSP for sugar and higher ethanol purchase prices are necessary.
Ethanol Allocation
Industry Concerns
There is a need for upward revision in sugar-based ethanol prices and an increase in sugar-based ethanol allocation in future cycles to help the industry generate revenue.
Farmer Support
While the government has allocated 15 lakh tonnes of sugar for export, additional allocation in the latter part of the season might be considered to further support the industry.
- Production (Oct 1 - Nov 15, current season)
- 10.50 lakh tonnes
- Production (Oct 1 - Nov 15, previous season)
- 7.1 lakh tonnes
- Mills started crushing (current season)
- 325
- Mills started crushing (previous season)
- 144
- Sugarcane crushed (current season)
- 128 lakh tonnes
- Sugarcane crushed (previous season)
- 91 lakh tonnes
- Average recovery (current season)
- 8.2%
- Average recovery (previous season)
- 7.8%
- Estimated Gross Sugar Production (2025-26 season)
- 350 lakh tonnes
- Opening Stock (Oct 1)
- 50 lakh tonnes
- Projected Diversion for Ethanol
- 35 lakh tonnes
- Expected Domestic Consumption
- 290 lakh tonnes
- Tradable Surplus
- 20-25 lakh tonnes
- Current MSP of Sugar
- Rs 31/kg (since 2019)
Sources
India’s sugar production up 48% at 1 mln ton, mills report higher recovery
India likely to allow export of 5 lakh metric tonnes of organic wheat
Government to consider industry's demand to hike minimum selling price of sugar: Food Min Joshi