India's sugar output to rise 18% in 2025-26; ISMA seeks 2 mt export quota

With output set to surge, ISMA urges 2 mt export quota and 5 mt ethanol diversion amid growing demand and strong monsoon-linked cane yields

India’s sugar output is projected to rise by 18 per cent to 34.90 million tonnes in the upcoming 2025–26 sugar season starting October, driven by improved sugarcane yields and expanded acreage, the Indian Sugar and Bio-energy Manufacturers Association (ISMA) said on Thursday.

 

The industry body called for an export quota of 2 million tonnes and higher ethanol diversion of 5 million tonnes, up from 1 million and 3.4 million tonnes, respectively, in the current season.

 

Current season sees tight balance despite ethanol shift

 

Sugar production in the ongoing 2024–25 season is pegged at 26.10 million tonnes. However, after diverting 3.4 million tonnes to ethanol and permitting 1 million tonnes for export, actual supply is just about enough to meet domestic consumption demand, estimated at 27.9 million tonnes. 

 

 

For 2025–26, even with 5 million tonnes earmarked for ethanol and 2 million tonnes for export, ISMA believes supply will match the projected domestic consumption of 28.5 million tonnes—assuming no major disruption in production due to weather.

 

Timely export and ethanol policy needed: ISMA

 

Releasing its first preliminary estimate, ISMA President Gautam Goel said the association will push for timely approvals on sugar exports and ethanol diversion.

 

“The sugar production is estimated to be higher at 34.90 million tonnes with upward bias, and there is scope for export of 2 million tonnes in 2025–26 season,” Goel stated. He added that the industry will also seek an increase in the minimum selling price (MSP) of sugar, as well as higher ethanol procurement prices for variants made from B molasses and cane juice.

 

Top-producing states lead growth on back of monsoon

 

ISMA projected higher output from leading sugar-producing states in 2025–26:

 

Maharashtra: 13.26 million tonnes

Uttar Pradesh: 10.25 million tonnes

Karnataka: 6.61 million tonnes 

 

Sugarcane production in Maharashtra alone is expected to jump significantly to 13.26 million tonnes from 9.33 million tonnes, backed by better monsoons, increased acreage, and improved yields.

 

With consumption growth, ethanol blending targets, and favourable climatic conditions aligning, the sugar industry sees an opportunity for increased production while balancing domestic needs and global market potential.