India increases sugar production amid substantial carryover stocks

India has started the 2026/27 sugar production season significantly ahead of last year’s pace. As of October 25, the country had produced around 400 thsd tons of sugar, compared with 60 thsd tons on the same date last year, an increase of nearly 6.7 times. According to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), approximately 107 sugar mills have already started crushing operations across the country’s major producing regions.

Crushing operations are progressing most actively in Maharashtra, India’s largest sugar-producing state, where around 87 mills are already operational. Two mills have started processing sugarcane in Uttar Pradesh, while another 17 mills are operating across Tamil Nadu, Karnataka and Gujarat. Additional processing capacity is expected to come online in the coming weeks as sugarcane harvesting accelerates. In Uttar Pradesh, crushing operations will gradually expand across the western, central and eastern parts of the state.

Substantial carryover sugar stocks, estimated at around 3.6 mln tons at the end of the 2025/26 season, are providing significant support to the domestic market. Combined with rising production in the new season, these volumes offer an additional buffer to meet domestic consumption requirements. ISMA noted that available supplies are sufficient to meet the country’s needs, including during the festive season when demand typically increases.

The Indian government has also introduced additional measures to maintain stability in the domestic sugar market. In particular, it has extended the duty-free raw sugar import window and introduced limits on the volumes of sugar stocks that market participants can hold. These measures are aimed at maintaining product availability and containing potential increases in domestic prices amid seasonal fluctuations in demand.

ISMA Director General Deepak Ballani said the country has sufficient sugar stocks, while the commissioning of additional crushing capacity will further increase supplies. According to the association, India’s domestic sugar requirements will be comfortably met during the festive season, with prices expected to remain relatively stable. Meanwhile, sugar producers intend to maintain uninterrupted supplies and ensure timely payments to sugarcane farmers.

Tags: sugar, India