Sugar Production Rises 28 Percent to 78.25 Lakh Tonnes

16-Dec-2025 06:18 PM

New Delhi: According to a press release issued by the Indian Sugar and Bio-energy Manufacturers Association (ISMA), the apex body of private sugar mills, sugar production is increasing rapidly compared to last year due to increased availability of sugarcane at the national level and increased utilization of the crushing capacity of the mills.

Domestic sugar production during the current marketing season, up to December 15, has jumped by about 28 percent from 61.28 lakh tonnes last year to 78.25 lakh tonnes. The number of operational sugar mills has also increased from 477 to 478, and the sugar recovery rate from sugarcane is improving.

According to ISMA, ground-level assessments indicate a good increase in the average yield of sugarcane and the average sugar recovery rate from sugarcane in the major producing states. Compared to last year,

sugar production in Uttar Pradesh increased by 1.52 lakh tonnes to 24.56 lakh tonnes by December 15. Similarly, production in Maharashtra jumped to 31.79 lakh tonnes, where 187 mills crushed sugarcane. Karnataka also witnessed a good increase in sugar production.

Due to better production, higher free sale monthly quotas, and weak demand, the ex-factory price of sugar in Maharashtra has fallen to Rs. 3600-3660 per quintal, which is even below its cost of production.

This has led to increasing losses for sugar mills, and they may face serious difficulties in paying the outstanding dues to sugarcane farmers. ISMA has urged the government to immediately increase the minimum selling price (MSP) of sugar. It says that the increase in MSP should be in line with the cost of sugar production,

which is around Rs. 4000 per quintal. In fact, due to the regular increase in the Fair and Remunerative Price (FRP) of sugarcane, the cost of sugar exports has become quite high. Sugar mills will only get relief if there is an expected increase in the minimum support price (MSP).