Archive · 16 Dec 2025
India's Sugar Output Jumps 28% in 2025-26 Season
India has made a lot of sugar this season, about 28% more than last year.
But the price of sugar has gone down, and the mills that make sugar are having a hard time paying the farmers who grow the sugar cane.
The people who run the mills want the government to set a higher minimum price for sugar and let them use more sugar to make something called ethanol.
This would help them make more money and pay the farmers.
The government has allowed some sugar to be sold to other countries, but the mills say this isn't enough to fix their money problems.
India's sugar production has increased by 28.33% to 77.90 lakh tonnes in the 2025-26 season.
Ex-mill sugar prices have dropped by Rs 2,300 per tonne to Rs 37,700 per tonne.
Cane crushing has increased by 25.6% to 900.75 lakh tonnes.
The NFCSF is urging the government to raise the minimum selling price to Rs 41 per kg and permit an additional 5 lakh tonnes of sugar for ethanol production.
Mills face cane payment obligations of over Rs 1.30 lakh crore and surplus stocks could block nearly Rs 28,000 crore in working capital.
- Who
- National Federation of Cooperative Sugar Factories Ltd (NFCSF), Indian sugar mills, farmers
- What
- India's sugar production has surged 28.33% in the 2025-26 season, but mills are facing financial challenges due to falling sugar prices and rising costs.
- When
- As of December 15, 2025, during the 2025-26 sugar season (October-September)
- Where
- India, with significant production increases in Maharashtra, Uttar Pradesh, and Karnataka
- Why
- To address the liquidity crisis and support farmers, the NFCSF is urging the government to raise the minimum selling price and permit more sugar diversion for ethanol production.
- Current Season Production
- 77.90 lakh tonnes
- Previous Season Production
- 60.70 lakh tonnes
- Ex-Mill Sugar Price
- Rs 37,700 per tonne
- Price Drop Since Season Start
- Rs 2,300 per tonne
- Cane Crushing Increase
- 25.6% to 900.75 lakh tonnes
- Maharashtra Production Increase
- 31.30 lakh tonnes (from 16.80 lakh tonnes)
- Uttar Pradesh Production Increase
- 25.05 lakh tonnes (from 22.95 lakh tonnes)
- Karnataka Production Increase
- 15.50 lakh tonnes (from 13.50 lakh tonnes)
- Proposed Minimum Selling Price
- Rs 41 per kg
- Additional Ethanol Diversion
- 5 lakh tonnes
- Estimated Ethanol Revenue
- Rs 20 billion
- Government Approved Exports
- 15 lakh tonnes
- Mills' Cane Payment Obligations
- Over Rs 1.30 lakh crore
- Surplus Stocks Working Capital Block
- Nearly Rs 28,000 crore
Sources
India's sugar output jumps 28% so far in 2025-26 season; mills urge to raise minimum selling price
India's Sugar Production Surges 28.33%, Cooperative Mills Federation Urges Government To Support Farmers By Raising Minimum Selling Prices
