India’s sugar production has witnessed a significant increase in the current crushing season, owing to higher sugarcane yields compared to the same period last year. The sugar production has risen by 28.34% in comparison to the previous year’s production. The government has taken a positive step by granting permission for the export of 1.5 million metric tons of sugar in the ongoing crushing season, which will benefit both the sugar mills and sugarcane farmers. However, with the rise in sugarcane production and increasing production costs, experts and farmer associations have urged the government to raise the Minimum Support Price (MSP) of sugar to help ease the financial strain on sugarcane producers. Key Highlights: Increase in Sugar Production: As of mid-December 2025, India's sugar production has reached 7.79 million metric tons, marking an increase of 1.72 million metric tons compared to 6.07 million metric tons during the same period in 2024. This rise in production can be attributed to favorable climatic conditions, particularly a good monsoon, and a higher area under sugarcane cultivation across key producing states. Sugarcane Crushing Statistics: Sugar mills across the country have processed a total of 18.375 million metric tons of sugarcane, marking a 25.61% increase in crushing operations compared to the previous year. This is reflective of the higher sugarcane cultivation, especially in states like Uttar Pradesh, Maharashtra, Karnataka, and others. State-Wise Sugar Production and Crushing: Uttar Pradesh: 120 sugar mills are operational in Uttar Pradesh, crushing 26.4 million metric tons of sugarcane. This has resulted in the production of 2.505 million metric tons of sugar, compared to 2.295 million metric tons during the same period in the previous year. Maharashtra: Maharashtra has 190 operational sugar mills crushing 37.9 million metric tons of sugarcane, yielding 3.13 million metric tons of sugar—more than double the 1.68 million metric tons produced last year. Karnataka: In Karnataka, 76 sugar mills have crushed 16.6 million metric tons of sugarcane, resulting in the production of 1.55 million metric tons of sugar, an increase from the 1.35 million metric tons produced in the previous season. Other States: Other states have produced 745,000 metric tons of sugar, up from 605,000 metric tons last year as of December 15, 2025. Challenges and Market Outlook: Slowdown in Sugar Prices: Despite the increase in production, the sugar market is witnessing a slowdown due to the lack of significant demand in the short term. With no major festivals or weddings for the next one and a half months, sugar consumption is expected to remain low. The current ex-mill sugar prices are ₹3770-3790 per quintal in Maharashtra and ₹3800-3850 per quintal in Uttar Pradesh, reflecting a subdued market. Impact on Farmers and Sugar Mills: The low prices of sugar have resulted in increased crushing costs, which are affecting the profitability of sugar mills and farmers. The National Federation of Cooperative Sugar Factories Limited (NFCSF) has expressed concern over this issue and has urged the government to raise the sugar MSP to ₹4100 per quintal to help mitigate these financial pressures. In addition, they have recommended an additional quota of 500,000 metric tons of ethanol for ethanol companies to ensure better price support for sugarcane producers and mills. Government's Measures: The government’s decision to allow the export of 1.5 million metric tons of sugar has been welcomed by the industry, as it will help both the export market and domestic sugarcane producers. However, there is an ongoing call for further intervention in the form of an increase in the MSP of sugar to provide greater financial stability to sugar mills and farmers.