India’s Sugarcane Output Hits 500 MMT in 2025-26

India’s sugarcane production reaches 500 MMT in 2025-26 as per the Third Advance Estimate released by the Ministry of Agriculture & Farmers Welfare. Sugar prices rise in recent weeks, prompting stock limits, physical verification, and a decision to permit duty-free imports of raw sugar. The government also sets the Fair and Remunerative Price (FRP) for the 2026-27 sugar season and issues crushing advisories to improve availability.

India’s Sugarcane and Sugar Sector:

Dimension	Key Details
Decadal growth in sugarcane output	Sugarcane production marks about 43.5% growth over the last 10 years, from 348.44 MMT in 2015-16 to 500 MMT in 2025-26.
Global rank	India is the world’s second-largest sugarcane producer.
Employment supported	The sugarcane sector supports nearly 5 crore farmers and around 5 lakh workers in sugar factories and allied industries.
Area under sugarcane cultivation	The area under sugarcane cultivation increases from 49.27 lakh hectares in 2015-16 to 58.87 lakh hectares in 2025-26.
Top sugarcane-producing states	Uttar Pradesh and Maharashtra are the top sugarcane-producing states in India.
Sugar exports	India exports 8 lakh MT of sugar in 2025-26, compared with 0.47 lakh MT in 2016-17.
Major sugar export destinations	Major export destinations of Indian sugar include Sri Lanka, West Asia, and East Africa.
FRP for sugar season 2026-27	Fair and Remunerative Price (FRP) for the sugar season 2026-27 (October to September) is set at ₹365/quintal, providing a basic recovery rate of 10.25%.
FRP comparison with 2016-17	FRP for the sugar season 2026-27 is ₹135 higher than the FRP for the sugar season 2016-17, which is ₹230/quintal with a basic recovery rate of 9.5%.
Retail sugar price movement (recent weeks)	Sugar prices increase from ₹48.18 per kg on July 20, 2026, to ₹55.70 per kg on August 20, 2026, reflecting about a 15.6% increase within 1 month.
Retail sugar price trend (Aug 2024 to Jul 2026)	Retail sugar prices remain broadly stable, increasing by around 3% annually between August 2024 and July 2026.
Reasons cited for recent sugar price increase	The present increase in sugar prices is attributed to: lower-than-expected domestic production; increased demand ahead of the festive season; weather-related damage to the sugarcane crop; tightening global sugar supplies and rising prices; and speculation and hoarding by some sections of the industry.
Current season sugar production estimate	Sugar production during the current season is expected to be around 306 LMT, compared to the initial estimate of around 343 LMT.
Factors affecting sugar production	Production is affected by: Red Rot and Top Borer disease, and waterlogging caused by excess rainfall.
Sugar diverted for ethanol	The share of sugar diverted for ethanol production declines from around 12% in 2022-23 to around 9% in 2025-26.
Source of ethanol produced	Nearly three-fourths of the ethanol produced in the country comes from grains, particularly maize.
Average annual sugar production	On average, India produces around 300-340 lakh MT of sugar annually.
Domestic sugar consumption	India’s domestic sugar consumption is around 280-290 lakh MT annually.
Sugarcane dues payment status	As of August 20, 2026, 97% of sugarcane dues for the 2025-26 sugar season have already been paid to farmers.
Stock limits on sugar dealers	A stock limit of 400 tonnes is imposed on sugar dealers across the country from August 1, 2026, to November 30, 2026.
Stock limits on bulk consumers	From September 1, 2026, bulk consumers are not permitted to hold sugar stocks exceeding 15 days of consumption.
Enforcement action	Joint teams of central and state government officials are conducting physical verification of sugar stocks at mills to check for hoarding and artificial scarcity.
Duty-free import decision	The government has decided to permit duty-free import of 10 lakh MT of raw sugar to augment domestic availability.
Crushing advisory	States and sugar mills are advised to begin crushing from October 15, 2026.
October sugar production (expected vs usual)	The crushing advisory is expected to raise October sugar production from the usual 3-4 lakh MT to more than 10 lakh MT.
New crushing season	The new crushing season will begin in October.
Global sugar deficit estimate	The global sugar deficit for 2026-27 is estimated at around 33 lakh MT.
International sugar prices	International sugar prices rise from $474/tonnes on June 30, 2026, to $552/tonnes on August 20, 2026, marking an increase of over 16% in less than 2 months.