India’s gross sugar production is expected to rise by 15% in the 2026 sugar season to around 35 million tonnes, driven by an above-average monsoon that is likely to boost cane acreage and yields in key producing states such as Maharashtra and Karnataka, according to a CRISIL report.
The anticipated growth is expected to ease the tight domestic supply, creating room for higher ethanol diversion and potentially reviving exports, provided there is supportive policy intervention.
In FY26, improved sugar availability and greater ethanol blending are likely to help sugar mills recover operating margins to around 9–9.5%, offering a lift to credit profiles that had come under pressure in the previous fiscal.
