Will India's sugar production soar by 18% this season?
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Synopsis
India's sugar industry is on the verge of a significant boost, with projections indicating an 18% rise in production for the upcoming season. This growth is set to impact both domestic supply and exports, making it a critical moment for sugarcane farmers and the economy.
Key Takeaways
- Projected sugar production for 2025-26: 34.90 million tonnes.
- Exports expected to reach 2 million tonnes.
- 5 million tonnes may be redirected for ethanol production.
- Higher minimum selling prices anticipated for sugar and ethanol.
- Improved yields and recovery rates contributing to increased production.
Mumbai, Aug 1 (NationPress) India's sugar production is anticipated to increase by 18 percent, reaching 34.90 million tonnes in the 2025-26 season commencing in October, as per a forecast from the Indian Sugar and Bio-energy Manufacturers Association (ISMA).
This rise in production is expected to elevate Indian sugar exports to 2 million tonnes from October 2025 to September 2026.
In the ongoing 2024-25 season (October-September), ISMA has projected sugar production at 26.10 million tonnes. ISMA President Gautam Goel stated, "The sugar production is estimated to be higher at 34.90 million tonnes with an upward bias."
For the upcoming season, around 5 million tonnes of sugar could be redirected for ethanol production, compared to 3.5 million tonnes in the current season, he noted.
The government has permitted exports of 1 million tonnes for the current season. ISMA previously urged the government to maintain the restrictions on ethanol imports, as this policy has stimulated India’s petrol blending program, thereby ensuring timely payments to sugarcane farmers.
Goel mentioned that the industry body will seek "timely" approval for 2 million tonne sugar exports and an increased redirection for ethanol. The industry also anticipates higher minimum selling prices for sugar and ethanol derived from B molasses and cane juices.
As of April 30, 2025, around 27 lakh tonnes of sugar have been diverted for ethanol production in the current season, with an additional 6 to 7 lakh tonnes expected to be redirected through the season, according to ISMA data.
For the 2025-26 season, ISMA projects higher sugar output in leading states: Uttar Pradesh at 10.25 million tonnes, Maharashtra at 13.26 million tonnes, and Karnataka at 6.61 million tonnes.
This increase in production is attributed to improved cane yields, enhanced sugar recovery rates, and expanded farmland due to favorable monsoon conditions.
Point of View
The anticipated increase in sugar production reflects India's resilience and adaptability in agriculture. With the government supporting sustainable practices and ensuring fair compensation for farmers, this development can potentially strengthen the economy and promote energy diversification through ethanol production.
NationPress
20/08/2025
Frequently Asked Questions
What is the projected sugar production for India in 2025-26?
India's sugar production is projected to reach 34.90 million tonnes in the 2025-26 season.
How much sugar is expected to be exported?
India is likely to export 2 million tonnes of sugar between October 2025 and September 2026.
What are the benefits of increased ethanol production?
Increased ethanol production will not only support the petrol blending program but also provide timely payments to sugarcane farmers.
