Lucknow: Uttar Pradesh continues to lead the country in sugar production during the 2024–25 crushing season, with 92.75 lakh tonnes of sugar produced so far. However, the state is also witnessing a sharp dip in sugar recovery and overall output compared to last year, reflecting broader concerns in the sugar industry.
According to the National Federation of Cooperative Sugar Factories Ltd (NFCSF), UP’s sugar production has declined from 103.65 lakh tonnes last year — a drop of nearly 11%. Even more alarming is the fall in sugar recovery rate from 10.60% to 9.70%, a signal that the same amount of cane is now yielding significantly less sugar.
“This fall in recovery is a red flag not just for Uttar Pradesh but for the entire sugar industry,” said an expert who is privy to development in sugar sector of Uttar Pradesh. “Several factors, including erratic weather and cane variety issues, have contributed to this drop. But immediate corrective measures are essential.”
While UP retains its pole position, the national sugar output has seen a worrying 18.38% decline, falling from 316.35 lakh tonnes in 2023–24 to 258.20 lakh tonnes as of July 30, 2025. Average national sugar recovery has also dropped to 9.30%, compared to 10.10% last year.
Maharashtra has recorded the steepest fall in production, from 110.20 lakh tonnes to 80.95 lakh tonnes, while Karnataka’s output is estimated to decline from 53 lakh tonnes to 42 lakh tonnes. Sugar recovery rates in both states have dropped significantly, with Karnataka plunging to 8.05%, down from 9.30%.
In comparison, UP’s recovery, though down, remains relatively stable — offering some comfort to policymakers in the state.
UP at the heart of Ethanol push
Uttar Pradesh is also playing a key role in India’s ethanol blending programme, which recently achieved its 2025 target of 20% ethanol blending in petrol — five years ahead of schedule. A substantial share of this ethanol comes from sugarcane-based feedstock, much of it sourced from UP.
Out of the 700 crore litres of ethanol supplied so far in the current ethanol year, 38% has come from sugarcane, with UP being one of the largest contributors.
The Maharashtra government’s recent decision to approve multi-feed distilleries has opened up new possibilities for ethanol diversification. A similar model may soon be adopted in UP to ensure future readiness and support the state’s sugar economy.
NFCSF has urged the central government to raise the minimum selling price (MSP) of sugar, revise ethanol procurement prices, and allow exports to manage surplus stock. These measures, the federation believes, are essential to stabilise the finances of sugar mills — especially in UP, where mill viability directly affects thousands of cane farmers.
“Policy action is crucial to protect the backbone of the sugar sector — the farmers,” said NFCSF in its report. “Without proper pricing and market freedom, mills can’t survive, and that will impact rural livelihoods.”
With the festive season approaching, sugar demand is expected to rise. Though ex-mill sugar prices had dipped below Rs 3,900 per quintal in May, the upcoming months may see price stabilisation.
“This will offer mills much-needed breathing space to carry out maintenance and prepare for the next crushing season,” said an NFCSF official.
A hopeful outlook for next season
Despite the current slump, NFCSF remains optimistic about the 2025–26 season. Favorable monsoon conditions, an expected increase in cane acreage in UP and Karnataka, and a timely hike in Fair and Remunerative Price (FRP) could push national sugar output to 350 lakh tonnes — provided recovery issues are addressed.
For now, Uttar Pradesh remains the anchor of India’s sugar economy — but one whose foundations need urgent strengthening.
