India’s 2025-26 sugar season is facing initial stress, with 78 mills shutting operations by mid-February due to cane shortage and stiff competition from jaggery and khandsari units.
Mills have started closing prematurely in the ongoing 2025-26 sugar crushing season in India, indicating a challenging year for the industry. according to Indian Sugar Mills Association (ISMA), 78 sugar mills had stopped crushing operations till February 15, while 72 mills had stopped crushing operations during the same period last year. Last season was already weak in terms of production, and the current scenario appears to be even more stressful.
Sugar mills are also facing stiff competition from kolhu (traditional crusher) and khandsari units in Uttar Pradesh as well as cane supply constraints. In Uttar PradeshBy February 15, nine sugar mills were closed, while two mills did not start operations this season. Many more mills are likely to stop crushing by the end of February due to inadequate sugarcane availability.
Decline in sugarcane yield and early flowering in Uttar Pradesh Maharashtra Total sugar production is expected to be affected. However, total sugar production till February 15 stood at 22.5 million tonnes, higher than the 19.7 million tonnes produced during the same period last year. Industry observers say crushing had started late in Maharashtra due to elections last year, which had skewed the initial production figures.
At the start of the season, ISMA had estimated sugar production for 2025-26 at around 34.9 million tonnes. Industry sources estimate that production may fall to around 29 million tonnes given the current circumstances after removing the estimated 3.4 million tonnes of sugar for ethanol production. With diversion the gross sugar production could be around 32.5 million tonnes.
In Uttar Pradesh, the country’s largest sugarcane producing state, sugar production reached about 6.6 million tonnes as of February 15, slightly higher than the 6.4 million tonnes recorded in the same period last year. However, the recovery rate has improved compared to last season.
data from National Federation of Cooperative Sugar Factories Limited It is learned that mills in Uttar Pradesh crushed 66.2 million tonnes of sugarcane till February 14, compared to 68 million tonnes in the same period last year, a decline of about 1.8 million tonnes. Mills are trying to buy as much sugarcane as possible, but the supply remains short.
Sugarcane farmers in Uttar Pradesh have been grappling with disease incidence and declining yields in recent years, affecting the availability of sugarcane. Meanwhile, jaggery and khandsari units are offering higher prices, intensifying competition for sugarcane procurement.
Crusher operator Manjeet Singh of Nangalsoti village of Bijnor district of Uttar Pradesh said. rural voice That crushers are paying Rs 430 to 440 per quintal for sugarcane this season. Jaggery prices range between Rs 45 to Rs 50 per kg. Prompt cash payments and better rates are motivating many farmers to supply cane to crusher and khandsari units instead of sugar mills.
Looking at the current scenario, industry sources believe that most of the sugar mills in Uttar Pradesh may stop crushing by the end of March. In a normal year, crushing work in the state continues till May.
