Indian sugar industry has gathered pace, with mills producing 1.05 million metric tons of sugar since the 2025/26 season began on October 1, marking a 48% increase from the same period last year. This increased figure of India sugar production is mainly due to the increased operation of sugar mills. This sugar crushing season, a total of 325 sugar mills across the country have started operations so far, up sharply from 144 mills operating during the corresponding period a year earlier, the National Federation of Cooperative Sugar Factories said.
Net Production of Indian Sugar Industry is expected to Rise
With more mills operating this season, India sugar production is expected to rise to 31.5 million tons, even after diverting 3.5 million tons for ethanol production, as cane supplies have improved, the NFCSF said in a statement. India sugar exports are also expected to rise as country’s sugar consumption is estimated at around 29 million tons, which could further allow New Delhi to export 2 million to 2.5 million tons of sugar in the new season. Given the high sugar production in this sugar crushing season, India the world’s second biggest sugar producer last week allowed mills to export 1.5 million tons of sugar in the new season.
Favourable Government Agriculture Schemes Helped in Improving Yields
The main reason behind high yield by Indian sugar Industry this year is the favourable government agriculture schemes and timely intervention by govt. The cooperative sugar mills’ body said that as the government has already allocated 15 lt of sugar for export, the timely announcement would help to stabilize market sentiments. The export opportunity window for India (January to April) is only 2 months away and the country can expect additional 10 lt may be allowed in the latter part of the season. As far as MSP news India in context of sugar is concerned, the export opportunity will partially give relief to the sugar millers who are currently in a semi-depression state due to non-revision of minimum selling price (MSP) of sugar, fixed at Rs 31/kg since 2019.
As per the report as of November15, 325 mills have started crushing operation as against 144 mills in corresponding period of last year, it said adding 128 lt of sugarcane has been crushed as against 91 lt year-ago. The average recovery (sugar produce out of sugarcane) was 8.2 per cent, up from 7.8 per cent year-ago, it said.
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