India’s sugar output is expected to rebound in SY2026, driven by improved crop quality. This progress results from a higher proportion of cane planting and adequate water availability. In ESY2026, OMCs had called for bids for 1,050 crore litres for the first cycle, and have attracted significant interest, with manufacturers placing bids for 1,776 crore litres.

• Sugar demand-supply estimates – As per ISMA’s preliminary estimates, gross sugar production for SY2026 is estimated to increase by around 18% at 34.9 million MT (P.Y. 29.5 million MT). The net sugar production, after an estimated diversion of 4 million MT towards ethanol production, is likely to remain around 30.9 million MT.
• Domestic sugar prices – Domestic sugar prices (Uttar Pradesh) remained firm at Rs. 40/kg during August-September 2025. In October 2025, the prices increased to Rs. 41/kg, driven by increased demand during the festive season.