India`s Sugar Output Set to Rebound by 25% in 2025-26 by Amit Gupta, Kedia Advisory
India's sugar output for the 2025-26 marketing year is expected to surge by about 25%, reaching 35 million tonnes, driven by favorable monsoon rains and expanded cane planting. This positive forecast follows a challenging 2023-24 season affected by El Niño and limited irrigation. The USDA anticipates higher yields due to replenished groundwater in major producing states like Maharashtra, Karnataka, and Uttar Pradesh. The planted area is set to increase by 9%, and sugarcane production is forecasted to rise by 7%. With the government’s increased fair remunerative price (FRP), farmers are expected to plant more cane, ensuring a positive outlook for the season.
Key Highlights
* India’s sugar output for 2025-26 expected to rise by 25%.
* 2024 monsoon rains and expanded planting boost yield forecasts.
* USDA projects 35 million tonnes of raw sugar output.
* Sugarcane area is set to increase by 9% to 5.85 million hectares.
* Government’s FRP hike supports farmers and ensures increased planting.
India’s sugar production for the marketing year 2025-26 is projected to grow significantly by 25%, reaching 35 million tonnes. This positive forecast contrasts sharply with the challenges of the previous season, which was impacted by El Niño and limited water resources. However, the 2024 monsoon rains have replenished groundwater supplies in key sugarcane-growing states like Maharashtra, Karnataka, and Uttar Pradesh. This has allowed for expanded cane planting, with the USDA estimating a 9% increase in planted area, totaling 5.85 million hectares.
Sugarcane production is expected to rise by 7%, reaching 465 million tonnes, with around 370 million tonnes used for sugar production. The higher groundwater reserves are expected to boost the sugar recovery rate to 9.5%, up from 8% last season. The government's decision to increase the Fair and Remunerative Price (FRP) to ?355 per quintal has also provided farmers with an incentive to plant more cane, further boosting production.
The sugar industry remains optimistic, with ISMA (Indian Sugar and Bio Energy Manufacturers Association) projecting a strong outlook for the 2025-26 season. Improved planting efforts, particularly in Maharashtra and Karnataka, combined with the replacement of cane varieties in Uttar Pradesh, are expected to improve yields and recovery rates.
Finally
India’s sugar industry is poised for a strong 2025-26 season, with improved yields and an increased area under cultivation ensuring a robust output
Above views are of the author and not of the website kindly read disclaimer
