India's Sugar Production Surges by 18.4% to 195.03 Lakh Tonnes in January 2026

India's sugar production has witnessed a significant increase, reaching 195.03 lakh tonnes by January 31, 2026. This represents an impressive 18.4% rise compared to the 164.79 lakh tonnes produced during the corresponding period of the previous 2024-25 season. The data was released by the Indian Sugar & Bio-energy Manufacturers Association (ISMA), the apex body for the country's sugar industry.

Key States Drive Production Growth

The substantial increase in national sugar output is primarily driven by robust performance in major sugar-producing states. Maharashtra, the country's largest sugar producer, reported a remarkable 42% increase, with its output reaching 7.87 million tonnes by the end of January. The state currently has 206 mills operational, an increase from 190 mills a year ago.

Uttar Pradesh, the second-largest producer, also contributed significantly, recording a 5% rise in production to 5.51 million tonnes. Meanwhile, Karnataka, the third-largest producer, saw its output grow by approximately 15% compared to the same period last season.

Operational Landscape and Future Projections

The current sugar season, which runs from October to September, has seen 515 sugar mills actively crushing sugarcane across the country. This figure is slightly higher than the 501 mills that were operational at the same stage last year, indicating increased crushing momentum.

ISMA has projected the net sugar production for the entire 2025-26 season to reach 30.95 million tonnes, an 18.6% jump from the 26.1 million tonnes produced in the previous season. This optimistic outlook is supported by improved crop quality, higher cane planting, and adequate water availability.

Market Context and Industry Concerns

Despite the strong domestic production figures, the Indian sugar industry faces a complex global market. The increase in India's output comes against a backdrop of declining global sugar prices, largely due to anticipated worldwide surpluses and increased export potential from major producers.

This global trend has put pressure on domestic ex-mill prices, which are reportedly falling below the cost of production for some mills, thereby straining their finances. In response, ISMA has reiterated its call for an early revision of the Minimum Selling Price (MSP) of sugar. The association emphasizes that aligning the MSP with rising production costs is crucial for ensuring the financial sustainability of the sector, facilitating timely payments to farmers, and maintaining overall market stability without imposing an additional fiscal burden on the government.