As of 15 April 2026 (SS 2025–26), sugar production reached 274.8 lakh tons, compared to 254.96 lakh tons on the corresponding date last year, i.e. around 8% higher. A total of 19 factories are currently operational, versus 38 mills operating at the same time last year.
Uttar Pradesh: The state has produced 89.26 lakh tons so far, against last year production of 91.10 lakh tons. At present, 6 mills are operational, compared to 22 mills which operated last year on the corresponding date.
Maharashtra & Karnataka: Production has reached 99.3 lakh tons in Maharashtra and 48.10 lakh tons in Karnataka, compared to 80.88 lakh tons and 40.40 lakh tons, respectively, during the same period last year. All the factories in both the states have closed their operations for the main season. However, few mills in Karnataka will also operate in the special season from June/July’2026.
Additionally, some mills in Tamil Nadu will also continue their operations in the special season.
Following table gives state-wise details of sugar production this year vis-à-vis last year:
YTD | 15th April’2026 | 15th April’2025 | ||||||
| Number of Factories | Sugar Production (Lac Tons) | Number of Factories | Sugar Production (Lac Tons) | ||||
ZONE | Started | Closed | Operating | Started | Closed | Operating | ||
| U.P. | 121 | 115 | 6 | 89.26 | 122 | 100 | 22 | 91.10 |
| Maharashtra | 210 | 210 | 0 | 99.30 | 200 | 199 | 1 | 80.88 |
| Karnataka | 81 | 81 | 0 | 48.10 | 80 | 80 | 0 | 40.40 |
| Gujarat | 14 | 14 | 0 | 7.20 | 15 | 14 | 1 | 8.92 |
| Tamil Nadu | 30 | 17 | 13 | 5.25 | 30 | 16 | 14 | 4.58 |
| Others | 83 | 83 | 0 | 25.69 | 87 | 87 | 0 | 29.08 |
ALL INDIA | 539 | 520 | 19 | 274.80 | 534 | 496 | 38 | 254.96 |
(Note: Above sugar production figures are after diversion of sugar into ethanol)
As the sugar season nears its close, the industry is seeking an early revision of the Minimum Selling Price (MSP). Rising production costs and weak ex-mill realizations are straining mill cash flows and increasing cane payment arrears. A timely MSP revision, aligned with current cost structures, is essential to restore financial viability, enable prompt farmer payments, and stabilize the market—without any additional fiscal burden on the Government.
Simultaneously, rising crude oil prices and evolving geopolitical conditions highlight the need to accelerate ethanol blending. With an estimated production capacity of around 2000 crore litres (including grain-based), the Government may consider advancing a roadmap beyond E20 towards higher blends such as E22, E25, E27 and E85/E100, alongside faster rollout of flex-fuel vehicles (FFVs) and GST rationalisation to support adoption.
Further, the lack of revision in ethanol procurement prices for sugarcane-based feedstocks and lower allocation to the sector have created a mismatch between installed capacity and domestic offtake, leading to underutilised distillation capacity and inventory build-up. Timely price revision is needed to ensure feedstock parity and provide long-term policy clarity.
In addition, ongoing LPG supply disruptions have impacted food outlet operations, dampening sugar consumption and adding to industry pressures.
Addressing these issues through timely policy measures will help optimise capacity utilisation, strengthen financial stability, safeguard farmer interests, stabilise sugar markets, and support India’s energy security and rural economy.
