India's sugar production faces challenges due to weather conditions
India's sugar production faces challenges due to weather conditions
IN · Published Oct 10, 2026
• India's sugar production for the 2026-27 season is projected to be significantly lower than previous years, with an estimated output of 270 lakh tonnes, down 15% year-on-year.
• This decline is attributed to deficient monsoon conditions and El Niño-related stress, particularly affecting Maharashtra and Karnataka.

Impact & Risks

The reduced sugar production could lead to higher prices, especially in mid-2027, with ex-mill rates potentially exceeding ₹50 per kilogram. Maharashtra and Karnataka are the most affected states, while Uttar Pradesh's irrigation systems provide some relief. The ethanol blending programme may need adjustments to prioritise sugar availability for domestic consumption, potentially impacting grain prices and related industries like poultry and dairy.

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