News Capsule: India Faces Second Year of Sugar Deficit, Mills Shut Early
03-Apr-2026 11:26 AM
News Capsule: India Faces Second Year of Sugar Deficit, Mills Shut Early
★ India is likely to face a sugar deficit for the second consecutive year in the 2025–26 season, as lower sugarcane yields have forced mills to shut earlier than usual.
★ Sugar production is estimated to fall below 280 lakh tonnes, while domestic demand is around 285–290 lakh tonnes.
★ At the start of the season, production was projected at about 310 lakh tonnes, but excessive rainfall impacted sugarcane yields. By the end of March, 467 out of 541 mills had shut operations, higher than last year.
★ In key producing states like Maharashtra and Karnataka, most mills have closed early, increasing pressure on supply.
★ The government’s push for exports, with a quota of 20 lakh tonnes, may further tighten domestic availability. Meanwhile, opening stock for the next season is expected to fall from around 50 lakh tonnes to below 40 lakh tonnes.
★ Lower production and rising exports are likely to reduce domestic stocks, which may support sugar prices in the coming months.