India’s Early-Season Sugar Output Jumps 43% as Recovery Rates Improve

Mumbai – India’s sugar production for October and November surged by 43 percent compared to the same period last year, supported by higher recovery rates and faster crushing operations across most major sugarcane-producing regions.

The rise in output strengthens the outlook for surplus availability, adding momentum to expectations that the country could continue exports without risking domestic supply concerns.

Industry bodies reported that mills produced 4.1 million metric tons of sugar by the end of November, a notable increase from 2.88 million tons recorded at the same point last season.

The strong start to the 2025–26 sugar season reflects favourable growing conditions in several states and improvements in operational efficiency at mills.

Maharashtra, the country’s largest sugar-producing state, registered the biggest jump in output, with production more than tripling to 1.7 million tons during the two-month period.

Officials noted that enhanced cane quality, timely rainfall patterns, and early commencement of crushing contributed significantly to the strong performance this year.

Uttar Pradesh, the nation’s second-largest sugar producer, reported a 9 percent increase in production to 1.4 million tons.

State mills benefited from stable cane supplies, improved field management practices, and better plant performance, giving a boost to the overall national tally.

In contrast, production in Karnataka slipped to 774,000 tons, compared with 812,000 tons in the previous season.

The decline was attributed mainly to farmer protests over cane pricing, which affected crushing operations and caused intermittent disruptions across several districts.

The National Federation of Cooperative Sugar Factories stated that the recovery rate in the first two months of the season rose to 8.51 percent, up from 8.29 percent last year.

The sugar recovery rate is a crucial metric for the industry, reflecting the percentage of sugar extracted from sugarcane stalks—an improvement that directly enhances overall production levels.

With the strong recovery rate and increased output, industry associations believe India has the capacity to allow additional exports during the current season.

Lower diversion of sugarcane juice for ethanol blending, compared to previous years, has also contributed to a larger exportable surplus available for global markets.

The federation recommended that the government permit an additional 1 million metric tons of sugar exports this season, citing lower ethanol-related diversion as a key reason for the industry’s excess supply.

India had earlier approved exports of 1.5 million metric tons for the current cycle, though mills are facing challenges in securing export deals due to global prices falling below domestic market rates.

The Indian Sugar & Bio-Energy Manufacturers Association has also urged the government to revise the minimum selling price of sugar in the domestic market.

The association emphasised that the floor price has remained unchanged for over six years, even as mills continue to face rising production costs, making a revision necessary to maintain financial stability across the sector.

Industry leaders argue that an upward revision of the domestic floor price would help mills manage operational expenses and ensure timely payments to farmers, particularly in states where cane prices have increased.

With higher output expected to continue through the season, the financial health of mills is likely to remain a crucial consideration for policymakers.

As the harvest and crushing season progresses, analysts expect India’s sugar supply position to remain comfortable despite regional disruptions.

The combination of improved recovery rates and stronger early production has reinforced confidence in both domestic availability and export potential for the remainder of the season.