Mumbai, Aug 1 India's sugar production is projected to rise 18 per cent to 34.90 million tonnes in the 2025-26 season starting in October, according to a forecast released by the Indian Sugar and Bio-energy Manufacturers Association (ISMA).
The increased production will take Indian sugar exports to 2 million tonnes between October 2025 and September 2026.
In the current 2024-25 season (October-September), ISMA estimated sugar production at 26.10 million tonnes. "The sugar production is estimated to be higher at 34.90 million tonnes with upward bias," said ISMA President Gautam Goel.
About 5 million tonnes of sugar can be diverted next season for ethanol production compared with 3.5 million tonnes in the current season, he added.
The government has allowed exports of 1 million tonnes in the current season. ISMA had earlier urged the government to continue with the restrictions on ethanol imports, as the measure has spurred India’s petrol blending program. This spur, in turn, facilitated the timely payment of wages to sugarcane farmers.
Goel said the industry body will seek "timely" permission for 2 million tonne sugar exports, increased diversion for ethanol. The industry also expects higher minimum selling prices for sugar and ethanol derived from B molasses and cane juices, he added.
Approximately 27 lakh tonnes of sugar have been diverted for ethanol production up to April 30, 2025, during the current season. An additional 6 to 7 lakh tonnes are expected to be diverted over the remaining season, according to ISMA data.
For the 2025-26 season, ISMA forecasts higher sugar output in the top-producing states: Uttar Pradesh at 10.25 million tonnes, Maharashtra at 13.26 million tonnes, and Karnataka at 6.61 million tonnes.
The output is estimated to increase due to higher cane yields, improved sugar recovery rates and increased acreage due to good monsoon.
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