Indian Sugar Production: Possible decline in sugar production in India; Half of 207 factories closed due to heavy rains

• Chances of reduction in sugar production
• Production to 9.6 million tonnes from 10.8
• Increase in sugar prices

Indian Sugar Production: Heavy rains have hit sugarcane in some major sugarcane producing states. As a result, it is understood that the sugar production in the country may decrease. This will limit exports from India, the world’s second largest producer. Traders and farmers say India may struggle to export even half of its allocated export quota, supporting global sugar prices, which are at a five-year low.

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Based on internal estimates by five trade associations, India’s sugar production in the 2025-26 marketing year ending in September is estimated to be between 28.5 and 29 million tonnes. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has forecast sugar production at 30.9 million tonnes this year. MEIR Commodities India Managing Director Raheel Shaikh said, ‘Production has declined in all major sugarcane producing states. This is reducing the production estimate for the current season.’ According to a state government official, Maharashtra has produced 9 million tonnes of sugar so far this season.

Almost half of the 207 sugarcane factories that have been started have closed down due to shortage of sugarcane. A Mumbai-based trader said that prices are likely to be supported by a drop in sugar production from next month and an expected increase in demand.

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Maharashtra, the largest sugarcane producing state, is expected to suffer heavy losses. Production in the state is expected to be 9.6 million tonnes against the earlier estimate of 10.8 million tonnes. About five dozen farmers in sugarcane-producing areas of Maharashtra and neighboring Karnataka said heavy rains affected the growth of sugarcane roots and the crop ripened prematurely. Farmers said they expected at least 60 tonnes of sugarcane per acre, but only 48 tonnes yielded. In September, sugarcane producing areas of Maharashtra received 115 percent more rainfall than normal.