In view of the ongoing challenges and to build on the momentum of the new Sugar (Control) Order, the National Federation of Cooperative Sugar Factories (NFCSF) has urged the government to consider several key policy actions. The NFCSF has called for a revision of the Minimum Selling Price (MSP) of sugar to offset the increased production costs, now estimated at Rs. 40/kg. It also recommended the early announcement of a 50 LMT sugar diversion target for ethanol for the 2025–26 season.
The NFCSF emphasized the need to revise ethanol procurement prices, especially for ethanol produced from sugarcane juice and B-heavy molasses. It further advocated for the continuation of a progressive sugar export policy, which would benefit port-based states such as Maharashtra, Karnataka, Gujarat, and Tamil Nadu, while also supporting price stability.
The federation also released sugar production data as of May 15.
The sugarcane crushing season in India is nearing its end, with only four sugar mills still operational as of May 15, according to NFCSF data.
According to the NFCSF, India’s total sugar production has dropped by nearly 18%, from 315.40 LMT in 2023-24 to 257.40 LMT [Reduction of 58 LMT] in the current season. This decline is primarily due to reduced sugarcane availability and a dip in average recovery rates, from 10.10% last year to 9.30% this season [Drop of 0.80%] Cane crushed also declined to 2767.75 LMT, down from 3122.61 LMT last year [Reduction of 354.86 LMT].
The states of Maharashtra, Uttar Pradesh, and Karnataka have seen the largest falls in output. Maharashtra’s production declined to 80.95 LMT (from 110.20 LMT) [Drop of 29.25 LMT]. Uttar Pradesh to 92.75 LMT (from 103.65 LMT) [Drop of 10.90 LMT] and Karnataka to 40.40 LMT (from 51.40 LMT) [Drop of 11 LMT] all impacted by lower recoveries. However, Gujarat held steady with a 10.30% recovery, and Uttarakhand recorded a modest improvement. States like Tamil Nadu, Bihar, and Andhra Pradesh saw sharper drops.
This declining trend will result in find net sugar production of 261.10 LMTs. Thus the closing stock at the end of the season is projected to be around 48–50 LMT, which is sufficient to meet domestic demand in October & November 2025. Additionally, sugar output is expected to rebound strongly in the 2025–26 season owing to favourable monsoon conditions and increased cane sowing in Maharashtra & Karnataka state.
The actual sugar diversion for ethanol production in the current season is estimated at 32 LMT, slightly below the initial target of 35 LMT. This shortfall is primarily attributed to the absence of a price revision for ethanol produced from sugarcane juice and B-heavy molasses, making direct sugar production a more financially attractive option. Consequently, an additional 3 LMT of sugar was produced instead of being diverted. Meanwhile, ex-mill sugar prices are currently stable in the range of ₹3,880 to ₹3,920 per quintal, supported by lower overall production and the Government’s proactive decision to permit exports. This has significantly improved liquidity across the industry, enabling sugar mills to clear approximately Rs. 91,000 crore in cane dues— out of a total of Rs.1.01 lakh crore [90%]- within just six months of the season.
“NFCSF reiterates its commitment to supporting sustainable growth in the sugar sector. The Federation looks forward to working with all stakeholders to ensure timely payments to farmers, stable sugar prices for consumers, and a vibrant future for India’s cooperative sugar industry,” Said Harshvardhan Patil, President of the National Federation of Cooperative Sugar Factories (NFCSF).
NFCSF crushing report till May 15
