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India’s Sugar Output Surges to 225 LMT by Mid-Feb; ISMA Flags Need for MSP Revision

By Sugar Times Team

16 February 2026

India’s Sugar Output Surges to 225 LMT by Mid-Feb; ISMA Flags Need for MSP Revision

New Delhi: India’s sugar production has reached 225.06 lakh metric tonnes (LMT) as of February 15, 2026, marking a significant rise compared to 197.35 LMT recorded during the same period last year, according to the Indian Sugar & Bio-Energy Manufacturers Association.

The ongoing 2025-26 sugar season (SS) reflects steady crushing progress across major producing states, ensuring uninterrupted domestic supply. A total of 456 sugar mills are currently operational nationwide, slightly lower than 460 mills operating on the corresponding date last year.

(Production figures are after diversion of sugar for ethanol manufacturing.)


Uttar Pradesh Records Steady Growth

Uttar Pradesh has produced 66.27 LMT of sugar so far this season, registering an increase of 2.23 LMT (around 3%) over last year’s 64.04 LMT.

  • Mills started: 120
  • Mills closed: 9
  • Currently operating: 111

Although fewer mills are operational compared to 119 mills last year, the state has maintained higher output through improved recovery and crushing efficiency.


Maharashtra & Karnataka Lead Production Gains

Maharashtra continues to dominate national output with 89.72 LMT, a sharp increase from 68.22 LMT last year.

Karnataka has produced 40.65 LMT, up from 35.80 LMT during the corresponding period last season.

Across Maharashtra and Karnataka, 55 factories have closed so far, slightly lower than 58 closures last year. Notably, some mills in South Karnataka are expected to resume operations during the special crushing season (June–September 2026), which could further support overall output.


Other Key Producing States

  • Gujarat: 5.80 LMT
  • Tamil Nadu: 2.72 LMT
  • Other states combined: 19.90 LMT

All-India total production currently stands at 225.06 LMT, compared to 197.35 LMT last year — reflecting a nearly 14% year-on-year increase.


ISMA to Release Third Advance Production Estimate

ISMA has utilized satellite imagery and field data analysis to assess standing cane crop, yield trends, and recovery rates. Based on this scientific assessment, the association is expected to release its Third Advance Estimate for the 2025-26 sugar season shortly.

Industry observers expect the upcoming estimate to provide clearer guidance on full-season output projections.


Industry Awaits Early MSP Revision

As inventories build up amid rising production, the sugar industry is urging the government for an early upward revision of the Minimum Selling Price (MSP) of sugar.

According to ISMA:

  • Production costs have increased significantly
  • Ex-mill realizations remain under pressure
  • Cash-flow challenges are widening
  • Cane payment arrears are rising

An MSP revision aligned with current cost structures would:

✔ Improve mill liquidity
✔ Enable timely cane payments to farmers
✔ Restore financial viability
✔ Maintain market stability
✔ Avoid additional fiscal burden on the Government

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Sugar Times Team

http://sugartimes.co.in

Published: 16 February 2026

Covering India's sugar & bio-energy industry — market news, policy updates, and agricultural intelligence for the industry.

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