India's Sugar Output Jumps 28% So Far in 2025-26 Season; Mills Urge to Raise Minimum Selling Price

India's sugar production has surged 28.33 per cent so far this season to 77.90 lakh 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 Rs 2,300 per tonne since the season began, now hovering around Rs 37,700 per tonne, despite the strong output.

As of December 15, the country's 479 operating sugar mills have produced 77.90 lakh tonnes compared with 60.70 lakh tonnes by 473 mills a year earlier, according to NFCSF data.

Cane crushing jumped 25.6 per cent to 900.75 lakh tonnes, the federation said in a statement.

Sugar output in Maharashtra, the country's top producing state, more than doubled to 31.30 lakh tonnes from 16.80 lakh tonnes, while Uttar Pradesh production rose to 25.05 lakh tonnes from 22.95 lakh tonnes.

Karnataka's output increased to 15.50 lakh tonnes till December 15 of the 2025-26 season (October-September) from 13.50 lakh tonnes in the year-ago.

The federation has called for the government to raise the minimum selling price to Rs 41 per kg and permit an additional 5 lakh tonnes of sugar to be diverted for ethanol production, which it estimates would generate nearly Rs 20 billion.

The federation welcomed the government's decision to permit exports of 15 lakh tonnes for the current season but said this alone would not address the liquidity crisis facing mills.

Mills face cane payment obligations of over Rs 1.30 lakh crore 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.