The Triveni Engineering & Industries Ltd. announced its financial results for the Third quarter ended December 31, 2025 (Q3 FY 26) on 20th January. Along with the financial numbers, the company laid out the domestic scenario for the sugar sector.
Net Sugar production
The company said that the net sugar production is expected to rise ~20% YoY, supported by favourable monsoons over the past two years, leading to higher cane acreage and improved yields.
The recovery is stronger in western and southern regions than in the north. Despite a one-month delayed start, Maharashtra produced ~64.5 LMT vs 43.0 LMT last year, while Karnataka produced ~30.7 LMT vs 27.1 LMT. Uttar Pradesh, despite an early start, produced ~45.7 LMT vs 42.85 LMT last season (Till 15th Jan’2026). Net sugar production is estimated at ~31.1 MMT, up from 26.1 MMT in SS 2024–25.
Sugar balance sheet
With an estimated opening balance as of October 1, 2025, of around 6 million tonnes, domestic production of 31 million tonnes, and domestic sales of around 28 million tonnes, the closing stock is expected to be around 8 million tonnes. This is after considering diversion of about 3.4 million tonnes of sugar equivalent into ethanol and 1.0 million tonnes of exports.
Sugarcane Prices
UP Govt has raised Sugarcane State Advised Price (SAP) by ₹30/qtl for SS 2025–26. The SAP now stands at ₹400/qtl for Early Maturity Variety (EMV) and ₹390/qtl for General Variety, up from ₹370/qtl and ₹360/qtl respectively in SS 2024–25.
Power Tariff Revision
The UPERC has recently issued the CRE Regulation 2024, leading to an upward revision in the applicable tariff for the export of power to UPPCL from our cogeneration units, effective from 1st April 2024.
Industry Scenario – International
Global sugar balance: Surplus sugar
As per the latest report from Covrig Analytics, the global sugar balance sheet for 2025-26 is pointing to a surplus of 4.7 million tonnes (up from 4.1 million tonnes earlier), driven by strong production and lagging demand.
International sugar prices
Sugar prices remained on a broad downward trend through 2025, driven by higher production across the three major origins (Brazil, India, and Thailand) and bearish crude oil prices, which lifted Brazil’s sugar mix to 50.91% (vs 48.19%), adding to supply-side pressure. Prices saw a brief rebound early in October 2025, but fell back sharply in November 2025, touching five-year lows.
The company said that there is an ethanol overcapacity in the industry-
- For Ethanol Supply Year (ESY) 2025-26 (Nov-Oct) (Cycle 1), OMCs2 have secured around 1,048 crore litres of ethanol.
- Cycle 2 tender expected shortly.
- Expect Maize procurement prices to remain soft, further supporting recovery in profitability.
