India's sugar output increased 22% to 15.9 MT until January 15: ISMA

India's sugar production rose 22 per cent to 15.9 million tonnes by January 15 in the 2025-26 season from a year earlier, supported by higher cane supplies and better yields, industry body ISMA said on Tuesday.

Output stood at 13 million tonnes in the same period last year, the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said in a statement.

Around 518 mills were operational as of Jan 15, compared with 500 a year ago. The sugar season runs from October to September.

Production in top producing state Maharashtra rose 51 per cent to 6.45 million tonnes from 4.27 million tonnes a year ago, while output in Uttar Pradesh increased to 4.6 million tonnes from 4.28 million tonnes. Karnataka's output rose to 3.1 million tonnes from 2.75 million tonnes in the year-ago period.

"India's sugar sector has made steady progress so far in the 2025-26 season, supported by adequate sugarcane availability, improved field-level productivity, and smoother operations across major producing regions," ISMA said.

However, the industry body warned that rising cane prices and falling sugar realisations were squeezing mill finances and delaying cane payments to farmers.

Ex-mill sugar prices in Maharashtra and Karnataka have declined to around Rs 3,550 per quintal, significantly below production costs, ISMA said.

"As the season advances and sugar inventories continue to build, indications suggest that cane payment arrears have begun to increase and may rise further if the current market conditions persist," it said.

ISMA called for an early revision of the minimum selling price (MSP) for sugar to restore financial viability and ensure timely payments to farmers.