New Delhi, March 2 India's sugar production reached 24.75 million tonnes by February of the current marketing season, which began in October, up 12.43% from the previous year, according to the industry body, ISMA, on Monday.
Sugar production stood at 22 million tonnes in the same period of the 2024-25 marketing year (October-September).
In a statement, the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said that production in Maharashtra, the country's top sugar-producing state, rose to 9.53 million tonnes by February of this marketing year, from 7.50 million tonnes a year ago.
Production in Uttar Pradesh, the country's second largest producing state, rose marginally to 7.48 million tonnes from 7.3 million tonnes, while that of Karnataka – the country's third largest producing state – rose to 4.45 million tonnes from 3.82 million tonnes in the said period.
A total of 305 factories are currently operational, compared to 330 mills operating at the same time last year.
ISMA said that some mills in South Karnataka are expected to resume operations during the special season from June/July to September 2026. As the sugar season progresses and inventories rise, ISMA said the industry continues to await an early upward revision of the Minimum Selling Price (MSP).
With production costs increasing and ex-mill realizations lagging, mills are facing mounting cash-flow pressures, leading to higher cane payment arrears.
In Maharashtra, arrears as of February 15 stood at Rs 4,601 crore, higher than Rs 2,744 crore on the same date last year.
"A timely MSP revision aligned with current cost structures is crucial to restore mill viability, expedite farmer payments, and maintain market stability, without any additional fiscal burden on the government," ISMA said.
In its third estimate, ISMA pegged gross sugar output at 32.40 million tonnes for 2025-26, higher than the actual output of 29.62 million tonnes in the previous year.
