India’s Sugar Production Hits 247.61 Lakh Tonnes – A Remarkable Growth in 2025!
India’s sugar production has reached 247.61 lakh tonnes as of March 31, 2025, during the 2024-25 sugar season, according to ISMA. Currently, 95 mills are still operational, with key sugar-producing states continuing production. Uttar Pradesh leads with 87.50 lakh tonnes, supported by better sugarcane yield and improved recovery rates, keeping 48 mills active until mid-to-late April. Maharashtra has contributed 80.06 lakh tonnes, though only six mills remain in operation.
Karnataka has produced 39.55 lakh tonnes, with just two mills still running. A special production season in South Karnataka and Tamil Nadu from June to September 2025 is expected to add another 4 lakh tonnes. After diverting 35 lakh tonnes for ethanol, ISMA has revised its net sugar production estimate to 264 lakh tonnes. This highlights the industry’s resilience and strong output despite seasonal challenges.
India’s Sugar Production Hits 247.61 Lakh Tonnes – A Remarkable Growth in 2025!
India has produced 247.61 lakh tonnes (24.76 million tonnes) of sugar as of March 31, 2025, during the ongoing 2024-25 sugar season, according to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA). Currently, 95 sugar mills remain operational across the country, with key states continuing production. Here’s a detailed overview of state-wise contributions and future projections:
State-Wise Performance
1. Uttar Pradesh: Leading the Production
Uttar Pradesh remains the top sugar-producing state, contributing 87.50 lakh tonnes so far. A total of 48 mills are still operational, supported by higher sugarcane availability due to improved plant cane yields. This has enabled mills to extend operations until mid-to-late April 2025. Additionally, better sugar recovery rates (the amount of sugar extracted from sugarcane) in the latter half of the season have further boosted output.
2. Maharashtra: Declining Operations, Strong Output
Maharashtra, another major sugar producer, has contributed 80.06 lakh tonnes this season. However, only 6 out of 200 mills are still operating. Most mills in the state have already closed after completing their crushing cycles, reflecting the seasonal nature of production.
3. Karnataka: Steady Contribution
Karnataka has produced 39.55 lakh tonnes of sugar, with 2 mills still running. Although operations are gradually winding down, the state remains a key player in India’s sugar industry.
Special Season Ahead: Southern States to Revive Production
ISMA has announced that some mills in South Karnataka are expected to restart operations between June and September 2025 for a special crushing season. Historically, Karnataka and Tamil Nadu collectively produce around 4 lakh tonnes of sugar during this period. This phase typically utilizes sugarcane from regions with unique harvesting cycles, ensuring a continuous supply for select mills.
Revised Production Estimates After Ethanol Diversion
India’s growing focus on ethanol blending has influenced sugar output. This season, 35 lakh tonnes of sugar have been diverted to ethanol production. After adjusting for this, ISMA has revised its net sugar production estimate for 2024-25 to 264 lakh tonnes. This aligns with the government’s initiative to reduce fossil fuel dependence and promote bio-energy.
Key Factors Driving Production
- Improved Sugarcane Yield in Uttar Pradesh
- Favorable weather conditions and advanced farming techniques have increased sugarcane availability.
- Higher sugar recovery rates (around 10-11% in later months) have maximized output.
- Ethanol Diversion Policy
- The government’s ethanol blending program, aiming for 20% ethanol-petrol blends by 2025, has encouraged sugar mills to allocate a portion of sugarcane for biofuel production.
- This helps reduce surplus sugar stock and stabilize market prices.
- Regional Variations in Mill Operations
- States like Maharashtra and Karnataka have shorter crushing seasons due to climate conditions and sugarcane varieties.
- Uttar Pradesh, with its higher cane yields, benefits from longer operational periods.
Challenges and Opportunities
- Late-Season Mills: The 95 operational mills face challenges such as rising temperatures affecting sugarcane quality and labor availability.
- Ethanol Expansion: While ethanol diversion supports energy goals, balancing it with domestic sugar demand (estimated at 280 lakh tonnes annually) remains critical.
- Export Dynamics: Global sugar prices and government export policies will influence revenue for mills in the coming months.
Conclusion
India’s sugar industry continues to evolve, adapting to policy changes and market demands. Uttar Pradesh’s robust output, Maharashtra’s phased operations, and Karnataka’s upcoming special season highlight the sector’s resilience and diversity. With ethanol production playing an increasingly significant role, the industry is moving toward sustainable energy solutions while ensuring a stable sugar supply. ISMA’s revised estimate of 264 lakh tonnes for 2024-25 reflects this balance, reinforcing India’s position as a global leader in both sugar production and bio-energy development.