News Capsule: Sugar Mills Shut Early in Uttar Pradesh Amid Cane Shortage, Output Impact Limited
12-Feb-2026 10:40 AM
News Capsule: Sugar Mills Shut Early in Uttar Pradesh Amid Cane Shortage, Output Impact Limited
★ In Uttar Pradesh, several sugar mills have halted crushing operations as early as late January due to lower sugarcane availability and increased diversion of cane to khandsari and jaggery units—well ahead of the usual March–April closure period.
★ As of January 31, 118 mills were operational in the state, compared with 122 mills during the same period last year. A few smaller mills have also reportedly closed for the season.
★ In regions such as Bareilly, Mahmudabad, and Muzaffarnagar, ratoon crop yields declined by 15–20%, while plant crop yields fell by around 10% in some areas. Farmers have been selling cane to local khandsari and jaggery producers due to delayed payments from sugar mills.
★ Sugarcane crushing in the state stood at 55.9 million tonnes (559 lakh tonnes) as of January 31, down from 57.9 million tonnes (579 lakh tonnes) a year ago.
★ The government has increased the Fair and Remunerative Price (FRP) of sugarcane to ₹355 per 100 kg, while the minimum selling price (MSP) of sugar has remained unchanged at ₹31 per kg since February 2019, putting financial pressure on mills.
★ Despite lower cane availability, sugar production in Uttar Pradesh reached 5.5 million tonnes (55 lakh tonnes) as of January 31, compared with 5.3 million tonnes (53 lakh tonnes) last year. The average sugar recovery rate improved to 9.9%, up from 9.1% a year ago.
★ At the national level, India’s sugar production for the 2025–26 (October–September) season stood at 19.5 million tonnes (195 lakh tonnes) as of January 31, marking an 18% year-on-year increase.
★ Although some mills in Uttar Pradesh have closed earlier than usual due to cane shortages, improved recovery rates and subdued export demand are expected to ensure adequate domestic supply. Sugar prices are likely to remain within a limited range.