532 of 534 sugar mills shut; UP records smallest dip
Pilibhit:
Sugar production in India
fell by over 55 lakh metric tons (LMT) this crushing season, with 532 out of 534 sugar mills ceasing operations by May 15, according to the National Federation of Cooperative Sugar Factories (NFCSF).
Despite widespread challenges, Uttar Pradesh saw the smallest drop among major sugar-producing states.
Production declined from 315.40 LMT in 2023-24 to 257.40 LMT in 2024-25. The drop was largely due to lower
sugarcane availability
, widespread red rot disease, and a dip in average recovery rates—from 10.10% last year to 9.30% this season. The total cane crushed also fell by 354.86 LMT to 2767.75 LMT.
UP, with 122 sugar mills, reported a relatively modest decline of 10.90 LMT—from 103.65 to 92.75 LMT.
In contrast, Maharashtra's output fell by 29.25 LMT to 80.95 LMT, and Karnataka dropped 11 LMT to 40.40 LMT.
To curb sugarcane diversion to jaggery units offering higher prices, the govt brought Khandsari units with capacities above 500 TCD under the official cane pricing framework for the first time. It also notified the Sugar (Control) Order, 2025, replacing the 1966 regulations.
NFCSF managing director Prakash Naiknavare said sugar diversion to ethanol this season was 32 LMT—below the 35 LMT target—due to a lack of price revision for ethanol from sugarcane juice and B-heavy molasses, making sugar production more viable.
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To stabilise the industry, NFCSF has urged the govt to raise the Minimum Selling Price (MSP) of sugar to offset rising production costs, announce an early 50 LMT diversion target for ethanol in 2025–26, increase ethanol procurement prices, and maintain a progressive export policy to support port-based states.
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