India’s sugar production has recorded a significant increase of 7.32% to 27.52 million tonnes in the ongoing 2025–26 season, according to the Indian Sugar Mills Association (ISMA). The growth has been largely driven by higher output in key producing states such as Maharashtra and Karnataka, supported by better cane availability and improved crushing operations.
The rise in sugar production reflects efficiency gains in the sugar production process, including enhanced milling capacity and favourable crop conditions. Industry experts note that these improvements have helped stabilise output levels despite fluctuations in weather and input costs.
At the same time, the expansion of ethanol blending in India continues to influence the sector. A significant portion of sugarcane is being diverted towards ethanol production under the government’s biofuel programme, which aims to reduce dependence on fossil fuels. This shift is playing a crucial role in balancing domestic sugar supply while supporting energy security goals.
However, the overall sugar production in India remains under close watch due to multiple factors, including domestic consumption trends and evolving export policy decisions. Authorities are carefully monitoring the balance between sugar availability and ethanol diversion to ensure price stability and adequate supply.
The interplay between rising output and increasing ethanol blending highlights a structural transformation in the industry. While higher production strengthens domestic supply, policy-driven ethanol demand is reshaping the sector’s long-term dynamics.
Going forward, experts believe that maintaining this balance will be key to sustaining growth, ensuring farmer profitability, and boosting India’s competitiveness in global sugar markets.