Context: According to an early estimate of Indian Sugar Mills Association (ISMA) despite a drop in sugarcane acreage, Uttar Pradesh is likely to maintain a steady production of sugar.
- The association has projected an 18.5% rise in sugar production nationally while Maharashtra is likely to register a whopping 39% jump.
Major Findings:
- Uttar Pradesh, which ranked first in sugar production in 2024–25, is likely to register an increase of 2% in 2025-26.
- In 2024–25, Uttar Pradesh produced about 101 lakh metric tonnes of sugar (pre-ethanol), surpassing Maharashtra, where production fell to 93.51 lakh metric tonnes due to bad weather.
- Production Outlook for 2025–26: ISMA estimates that Maharashtra’s sugar production will jump from 93.51 LMT to 130 LMT in the ongoing cane-crushing season, indicating a major surge in sugar recovery.
- UP’s sugar production, is estimated to go up from 101 LMT to 103 LMT.
- Cane Area and Crop health: Although the cane area in the state has declined from 23.3 lakh hectares to 22.57 lakh hectares, the overall crop health has improved due to better disease management and the introduction of high-yielding varieties.
- ISMA has said that timely field interventions and varietal replacement programmes have helped control red rot and other diseases, ensuring a healthy standing crop this season.
- Ethanol diversion: The diversion of sugar towards ethanol production in 2025-26 is expected to be around 34 lakh tonnes, slightly lower than 35.01 lakh tonnes in the 2024-25 season.
- The net national sugar production is estimated at 309.5 lakh tonnes, compared with 261.08 lakh tonnes last year.
- With higher national output and sufficient stock, domestic sugar prices are expected to remain stable or slightly soft, benefiting consumers but limiting mills’ profit margins.
Government Initiatives to promote Sugar production
- UP sugarcane department action plan for 2025-26:
- Objective: To increase Gross Value Added (GVA) contribution from Rs 1,09,461 crore in 2023-24 to Rs 1,03,038 crore from sugarcane and Rs 38,808 crore from jaggery production by 2025-26.
- Key strategies: Increasing the average sugar recovery rate from 9.56 per cent to 10.50 per cent.
- Ensuring timely sale of 91.54 lakh quintals of sugar in 2025-26 to prevent financial losses from delays.
- Expanding the storage capacity of sugar mills to 4 lakh quintals by streamlining operations.
- Reducing reliance on state assistance, which currently stands at Rs 1,200 crore.
- Recruiting skilled workers through outsourcing for sugar mills.
- Increase in the State Advisory Price of sugarcane: The Uttar Pradesh government announced ₹30 per quintal increase in the SAP of sugarcane for the 2025-26 season.
