Beginning on October 1, India produced 4.1 million metric tonnes of sugar during the first two months of the 2025–2026 season, a 43% increase over the 2.88 million tonnes produced the year before. This robust growth stemmed from higher sugarcane recovery rates, rising to 8.51% from 8.29%, and accelerated crushing in major states. Maharashtra, India’s largest producer, saw production more than triple to 1.7 million tonnes, with 170 mills operating, up from 124 last year, while Uttar Pradesh’s output increased 9% to 1.4 million tonnes.
Karnataka experienced a slight decline to 774,000 tonnes from 812,000 tonnes due to farmer protests disrupting operations, though 75 mills were active compared to 71 previously. By late November, there were 428 mills operating nationwide, up from 376, thanks to improved monsoon conditions and healthier cane yields. The National Federation of Cooperative Sugar Factories reported 48.6 lakh metric tonnes of sugarcane crushed, yielding 41.35 lakh metric tonnes of sugar.
Despite the effects of flooding elsewhere, industry organisations like the Indian Sugar Bio-Energy Manufacturers Association predict full-season output at 30.95 to 34.9 million tonnes, supported by higher cane quality in key regions. This surplus facilitates exports without domestic shortages, the government already approved 1.5 million tonnes, and groups advocate an additional 1 million tonnes, given less ethanol diversion. However, worldwide pricing below domestic levels hampers agreements, leading to requests to boost the unaltered six-year-old floor price amid rising costs. Spot prices are pushed down by the spike, indicating a possible oversupply.
