Maharashtra and Karnataka led the charge with substantial increases in output, while Uttar Pradesh saw a slight decline
NEW DELHI
India’s sugar production has surged by nearly 7% this season, reaching 275.28 lakh tonnes as of April 30, according to new data from the Indian Sugar and Bio-Energy Manufacturers Association (ISMA).
While the output is up from last year’s 256.49 lakh tonnes, the industry is sounding the alarm over a deepening financial crisis.
As the crushing season winds down, the production map shows a significant shift. Maharashtra and Karnataka led the charge with substantial increases in output, while Uttar Pradesh saw a slight decline. Currently, only five mills remain operational nationwide, signaling the end of the main production cycle.
Despite the higher production, sugar mills are struggling with “financial stress.” ISMA has called for an immediate hike in the Minimum Selling Price (MSP) of sugar, citing a dangerous gap between rising production costs and low market prices.
This cash flow pressure has hit farmers the hardest. In Maharashtra alone, cane payment arrears, the money owed to farmers for their crops, have ballooned to ₹2,130 crore, nearly triple the amount recorded at this time last year.
“A timely upward revision in MSP is critical to restore financial viability and facilitate timely cane payments to farmers,” ISMA stated, noting that this could be done without adding any fiscal burden to the government.
With global crude oil prices rising, the industry is also pushing for a more aggressive Ethanol Blending Program. While India is currently targeting 20% blending (E20), ISMA believes the country is ready for much more.
The association warned that delays in adjusting ethanol procurement prices have left many distillation units underutilized, hurting both industry revenue and India’s energy security goals. For now, the “sweet” success of higher production is being overshadowed by the “bitter” reality of unpaid dues and stalled policy updates.
