India's sugar output jumps 28% in this season, mills urge to raise MSP

India's sugar production has surged 28.33 per cent so far this season to 7.79 million tonnes, but the cooperative mills federation is urging the government to raise the minimum selling price, warning that falling market rates and rising costs are threatening farmers' payments.

The National Federation of Cooperative Sugar Factories Ltd (NFCSF), which represents farmer-owned mills, said ex-mill sugar prices have dropped by nearly ₹2,300 per tonne since the season began, now hovering around ₹37,700 per tonne, despite the strong output.

As of December 15, the country's 479 operating sugar mills have produced 7.79 million tonnes compared with 6.07 million tonnes by 473 mills a year earlier, according to NFCSF data.

Cane crushing jumped 25.6 per cent to 90.075 million tonnes, the federation said in a statement.

Sugar output in Maharashtra, the country's top producing state, more than doubled to 3.13 million tonnes from 1.68 million tonnes, while Uttar Pradesh production rose to 2.505 million tonnes from 2.295 million tonnes.

Karnataka's output increased to 1.55 million tonnes till December 15 of the 2025-26 season (October-September) from 1.35 million tonnes in the year-ago.

The federation has called for the government to raise the minimum selling price to ₹41 per kg and permit an additional 500,000 tonnes of sugar to be diverted for ethanol production, which it estimates would generate nearly ₹2,000 crore.

The federation welcomed the government's decision to permit exports of 1.5 million tonnes for the current season but said this alone would not address the liquidity crisis facing mills.

Mills face cane payment obligations of over ₹1.30 trillion this season, while surplus stocks could block nearly Rs 28,000 crore in working capital, the federation said.

"Cooperative sugar mills are owned by millions of farmers, and sustaining the present momentum requires decisive government support," NFCSF President Harshvardhan Patil said.

The federation has submitted detailed proposals to Prime Minister Narendra Modi and the food minister seeking urgent policy measures.