How Has India’s Sugar Industry Reached the Rs 1.3 Lakh Crore Mark?

Synopsis
Key Takeaways
- India's sugar industry has reached Rs 1.3 lakh crore.
- Approximately 5 crore farmers are involved in sugarcane cultivation.
- India targets 20 percent ethanol blending with petrol.
- Projected sugar production for 2025–26 is 35 million tonnes.
- The sector enhances rural prosperity and energy security.
New Delhi, July 3 (NationPress) Union Consumer Affairs, Food & Public Distribution Minister Pralhad Joshi stated on Thursday that under the guidance of Prime Minister Narendra Modi, India’s sugar industry has expanded to a staggering Rs 1.3 lakh crore, significantly enhancing rural prosperity, energy security, and green power. This transformation has been fueled by reforms such as record ethanol blending and the Atmanirbharta initiative in fuels.
While addressing the 'Cooperative Sugar Industry Conclave 2025' at the Dr. Ambedkar International Centre, he remarked: "It’s uplifting to witness how the sector’s development is fostering a sustainable and self-reliant future for India."
He emphasized that the nation's collective strength, innovation, and efficiency have revolutionized this industry.
In a post on X, Joshi mentioned: "I spoke at the 'Cooperative Sugar Industry Conclave 2025' & 'National Efficiency Award Ceremony' at the Dr. Ambedkar International Centre, New Delhi, where we recognized the outstanding achievements of India’s sugar cooperative sector."
Moreover, he pointed out that nearly 5 crore farmers (including their families) are involved in sugarcane cultivation across India, with the industry providing numerous job opportunities, both directly and indirectly.
He stressed that the central government, under the Prime Minister's leadership, prioritizes farmers' welfare and consumer protection while ensuring that the industry thrives, highlighting collaborative efforts to enhance agricultural practices.
Joshi also underscored India's dedication to upgrading technology and skills in the sugar and biofuel domains. He noted India's significant cultural and economic dependence on sugar and its position as the world’s largest sugar consumer and a major biofuel producer, achieving over 12 percent ethanol blending with petrol and targeting 20 percent shortly.
The Minister reiterated the importance of biofuels in addressing climate change and elaborated on the favorable impacts of India's Ethanol Blended with Petrol (EBP) Programme on both the sugar industry and farmers.
Furthermore, projections indicate that India's sugar production may increase by 15 percent in the 2025–26 season (October–September) to approximately 35 million tonnes, spurred by expectations of an 'above-average' monsoon, which is likely to enhance cane acreage and yields in major producing states like Maharashtra and Karnataka, as noted by Crisil Ratings.
This anticipated increase in output is expected to alleviate domestic supply constraints and could also encourage higher ethanol diversion and a potential rebound in sugar exports, according to the report.