India's Sugar Production Projected to Soar 16% in 2025-26 Season

India's sugar production for the 2025-26 sugar season is estimated to rise significantly by 16% to 343.5 lakh tons, a notable increase from the 296.1 lakh tons produced in the 2024-25 season. These first advance estimates from the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) are based on post-monsoon satellite imagery and reviewed by their Executive Committee. The projection points to improved sugarcane acreage, which saw a marginal 0.4% increase to 57.35 lakh hectares, coupled with favorable weather conditions, including abundant rainfall and adequate reservoir levels across major sugar-producing states. Higher yields and strong cane development programs are also contributing factors.

Maharashtra, a key sugar-producing state, is anticipated to achieve a record output of 130 lakh tons in 2025-26, a substantial 39% increase from last year's 93.51 lakh tons, supported by increased cane area and improved yields. Karnataka is also set for growth with a 6% rise in sugarcane acreage to 6.8 lakh hectares, projecting 63.5 lakh tons of sugar production. Uttar Pradesh expects to produce 103.2 lakh tons, slightly up from the previous year, despite a decline in cane area, due to better crop health and varietal advancements.

The estimated diversion of sugar for ethanol production is slightly lower at 34 lakh tons for 2025-26, resulting in a projected net sugar production of 309.5 lakh tons. With a comfortable sugar balance, India is well-positioned to export nearly 20 lakh tons, with the government allowing 15 lakh tons and removing the 50% export duty on molasses.

Impact This substantial increase in projected sugar production could lead to increased supply in the domestic market, potentially influencing sugar prices and the profitability of sugar manufacturing companies. The enhanced export outlook may also benefit India's trade balance. The news is significant for commodity traders, sugar producers, and investors in related sectors. **Impact Rating**: 8/10.

Heading: Difficult Terms and Their Meanings Lakh tons: A unit of measurement in India, where 'lakh' means 100,000. So, 343.5 lakh tons is 34,350,000 tons. Advance estimates: Preliminary projections or forecasts made before the final results are available. Post-monsoon satellite imagery: Images taken from space after the monsoon season to assess crop conditions. Executive Committee: A core group of members within an association responsible for managing its affairs. Sugarcane acreage: The total area of land cultivated with sugarcane. Yields: The amount of crop produced per unit of land. Sugar recovery: The percentage of sugar extracted from sugarcane. Diversion of sugar towards ethanol production: Using a portion of the sugar produced to manufacture ethanol, a biofuel. Net sugar production: The total sugar produced after accounting for any diversion to other uses like ethanol. Molasses: A thick, dark syrup produced during the refining of sugarcane or sugar beets; it can be used for ethanol production or animal feed. Export duty: A tax imposed by the government on goods exported from the country.