Sugar Production May Dip By 11 Per Cent (Img: X)
New Delhi: Sugar production in India is likely to be lower than earlier estimates for the ongoing season, with the government projecting output at around 306 lakh metric tonnes (LMT).
The latest estimate is nearly 11 per cent lower than the initial projection of around 343 LMT made by sugarcane-producing states. The decline has been linked to crop diseases, excessive rainfall and weather-related damage affecting sugarcane cultivation.
According to the government, sugarcane crops in several regions have been affected by diseases including Red Rot and Top Borer. Excess rainfall has also resulted in waterlogging, damaging crops and reducing production potential.
Despite the expected decline in output, the government said the country has sufficient sugar stocks to meet domestic requirements until the beginning of the next crushing season in October.
The Centre said it is closely monitoring the recent increase in sugar prices and has taken several steps to maintain supply and control price fluctuations.
Sugar prices have increased from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, creating concerns among consumers.
The government said the rise is due to multiple factors, including lower domestic production, festive season demand, global supply pressure and possible hoarding.
The government has rejected claims that ethanol production is responsible for rising sugar prices.
Officials said the share of sugar diverted for ethanol production has actually declined from around 12 per cent in 2022-23 to nearly 9 per cent in 2025-26. The Centre added that nearly three-fourths of ethanol production now comes from grains, especially maize.
To prevent artificial shortages, the government has imposed stock limits on sugar traders. Dealers can hold a maximum of 400 tonnes of sugar until November 30.
Bulk consumers will also be restricted from storing sugar beyond 15 days of their consumption requirement from September 1. The Centre has additionally approved duty-free imports of 10 lakh metric tonnes of raw sugar to increase domestic availability.
Officials said joint teams of central and state authorities are inspecting sugar stocks at mills to check hoarding and ensure smooth supply.
The government expects early crushing from October 15 to improve availability during the festive season and maintain balance between consumer interests and sugarcane farmers’ payments.
