Maharashtra's Sugar Industry in Crisis Despite Higher Production

30-Mar-2026 07:20 PM

Pune: Although sugar production in Maharashtra has increased significantly this season compared to the last, the local industry is nonetheless facing considerable pressure due to various factors.

Firstly, limited sugarcane supply has forced sugar mills to shut down ahead of schedule, preventing the full utilization of their crushing capacity; and secondly, the ex-factory price of sugar has fallen below production costs. This has exacerbated financial distress within the sector.

By mid-March, most sugar mills in Maharashtra had ceased operations. Typically, sugar mills in the region remain active for up to 160 days; however, this season, their operational period was curtailed to a mere 100 days.

Furthermore, sugar exports to countries in the Gulf region have been adversely affected by the crisis unfolding in West Asia. Unseasonal rainfall during November and December 2025 damaged sugarcane crops in certain areas,

leading to a decline in supply and denying sugar mills the opportunity to continue crushing operations for their full scheduled duration. Despite these challenges, sugar production in Maharashtra rose from 79.12 lakh tonnes in the previous season to reach 98.84 lakh tonnes in the current season.