“The sugar production is estimated to be higher at 34.90 MT with upward bias, and there is scope for export of two MT in the 2025-26 season,” Gautam Goel, president, ISMA, said at a briefing.
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Goel said the industry body will seek timely permission for 2 MT of sugar exports, higher diversion for ethanol, an increase in the minimum selling price (MSP) of sugar, and revisions in prices of ethanol made from B-molasses and cane juice.ISMA has projected a rise in sugar output across major producing states for the 2025–26 season: Maharashtra: 13.26 MT (42% higher);Uttar Pradesh: 10.25 MT (3% increase); Karnataka: 6.61 MT (23% increase)
Sugarcane production
Sugarcane production is also expected to rise to 13.26 MT next season from 9.33 MT in the current season, driven by better yields and increased acreage supported by good monsoons.
After restricting sugar exports in the 2023–24 season, the government in January 2025 allowed the export of 1 MT in the ongoing 2024–25 season, considering domestic availability and ethanol diversion.
“The government should announce allowing sugar exports and revision in MSP at the earliest so that mills can handle large volumes of sugar production next season,” Tarun Sawhney, vice-chairman and managing director, Triveni Engineering and Industries, told FE.
Sugar millers have emphasised that while the fair and remunerative price (FRP) for sugarcane continues to rise, the MSP of sugar has remained stagnant, squeezing industry margins.
ISMA had earlier urged the government to raise the MSP of sugar from the current ₹31/kg to at least ₹36–37/kg, in line with the increase in FRP. The MSP has remained unchanged since 2018.
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“This policy alignment would enable sugar mills to improve their cash flows and liquidity, thereby ensuring that farmers receive timely dues,” Deepak Ballani, director general, ISMA, had said earlier. ISMA will release its second sugar production estimate in September 2025.
In April, the government approved a 4% hike in the FRP of sugarcane to ₹355/quintal for the 2025–26 season.
The sugar sector supports the livelihood of around 5 crore sugarcane farmers and their dependents, and directly employs about 5 lakh workers in mills. It also sustains many more in ancillary roles such as farm labour and transportation, according to an official statement.