NewsStocksIndia's Sugar Production Surges 22% to 159.09 Lakh Tonnes as of January 15, ISMA ReportsIndia's Sugar Production Surges 22% to 159.09 Lakh Tonnes as of January 15, ISMA Reports
India's sugar production has surged 22% to 159.09 lakh tonnes as of January 15, with Maharashtra leading the growth at 51% and operational mills increasing to 518. However, the industry faces financial stress as ex-mill prices have declined to ₹3,550 per quintal while sugarcane costs have risen across multiple states. ISMA has called for MSP revision to address the widening cost-price gap and ensure timely farmer payments.
*this image is generated using AI for illustrative purposes only.
The Indian sugar industry has demonstrated robust production growth in the current season, with all-India sugar production increasing by 22% to 159.09 lakh tonnes as of January 15, according to the Indian Sugar Mills Association (ISMA). This represents a substantial rise from 130.44 lakh tonnes recorded in the corresponding period of the previous year. The positive production momentum has been supported by an increase in operational mills to 518 from 500 in the previous year.
State-wise Production Performance
Maharashtra emerged as the standout performer among sugar-producing states, recording exceptional growth in the current season. The state's sugar production surged by 51% to reach 64.50 lakh tonnes, compared to 42.71 lakh tonnes in the previous year. This impressive performance was supported by an increased number of operational mills, with 204 mills currently in operation compared to 196 mills in the year-ago period.
| State | 15-Jan-26 | 15-Jan-25 | Growth |
|---|---|---|---|
| Maharashtra | 64.50 lakh tonnes | 42.71 lakh tonnes | +51% |
| Uttar Pradesh | 46.05 lakh tonnes | 42.82 lakh tonnes | +8% |
| Karnataka | 31.05 lakh tonnes | 27.45 lakh tonnes | +13% |
| Gujarat | 2.86 lakh tonnes | 3.73 lakh tonnes | -23% |
| Tamil Nadu | 1.85 lakh tonnes | 1.30 lakh tonnes | +42% |
| Others | 11.78 lakh tonnes | 12.43 lakh tonnes | -5% |
| All India | 159.09 lakh tonnes | 130.44 lakh tonnes | +22% |
Uttar Pradesh, traditionally the largest sugar-producing state, contributed 46.05 lakh tonnes with a steady 8% growth over the previous year. Karnataka also demonstrated improved crushing momentum, with sugar production increasing by approximately 13% to 31.05 lakh tonnes.
Industry Financial Challenges
Despite the strong production numbers, the sugar industry is grappling with significant financial pressures. ISMA highlighted that ex-mill sugar prices in Maharashtra and Karnataka have declined further to around ₹3,550.00 per quintal, which is substantially below the current cost of sugar production. This pricing pressure comes at a time when multiple state governments have increased sugarcane prices.
Recent sugarcane price revisions have been implemented across several states, with Bihar being the latest to raise the agreed cane price by ₹15.00 per quintal to ₹380.00 per quintal. Similar price increases have been announced by the governments of Uttar Pradesh, Karnataka, Uttarakhand, Punjab, and Haryana.
Market Impact and Outlook
The widening gap between rising sugarcane costs and declining sugar realizations is creating mounting operational and cash flow stress for sugar mills. ISMA warned that as the season progresses and sugar inventories continue to build, cane payment arrears have begun to increase and may rise further if current market conditions persist.
The association emphasized the need for an early revision of the minimum selling price (MSP) of sugar, aligned with rising production costs, to restore financial viability and ensure timely cane payments to farmers while maintaining market stability.
Stock Market Response
Despite the positive production data, sugar stocks declined on Friday, with shares of major companies trading 1%-2% lower. Balrampur Chini Mills, Shree Renuka Sugars, Dalmia Bharat, Bajaj Hindusthan Sugar, and EID Parry (India) were all trading in negative territory around 1:55 pm, reflecting investor concerns about the industry's financial challenges despite strong production growth.
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