India sugar production faces decline amid weather and supply concerns

India's sugar industry faces production challenges due to weather patterns and regional competition. In Maharashtra, the National Federation of Cooperative Sugar Factories Ltd (NFCSF) warns that sugar output may fall below 85 lakh tonnes this season, significantly lower than the state government's 112 lakh tonne projection. Industry leaders cite concerns over low cane yields, sugar recovery rates, and the financial pressure on mills, requesting a higher minimum selling price and soft-loan packages.

In the border regions, Karnataka's sugar mills face potential cane shortages as Maharashtra begins its crushing season early on October 15. This early start may divert sugarcane away from Karnataka mills, particularly in the Belagavi district.

On a national scale, El Niño-induced dryness is expected to impact harvests, with gross sugar production in India forecast to decline to between 29 million and 31 million tonnes during the 2026-27 season. This potential decline could lead to a global sugar deficit and may necessitate sugar imports to rebuild domestic stockpiles.

Additionally, the West Indian Sugar Mills Association (WISMA) has requested the Maharashtra government release Rs 492 crore in pending interest subsidies for private sugar mills, arguing for equal treatment with cooperative mills under state policy.