Sugarcane Acreage Shrinks; Crop Hit by Drought and Floods

New Delhi. Compared to last year, not only has sugarcane sowing decreased slightly, but reports also indicate crop damage due to natural disasters in major producing states. This is likely to lead to a decline in sugar production during the current 2026-27 marketing season, keeping the supply and availability situation complex. Over the past two months, the government has released substantial 'free-sale' quotas for the domestic market, causing the industry's surplus stock to drop to a multi-year low. Sugarcane crushing is expected to commence in some mills next week, which could slightly improve the sugar stock position.

According to official data, the national sugarcane cultivation area stood at 58.47 lakh hectares this year, which is 40,000 hectares less than the previous year's figure. A more significant issue is the severe drought crisis in Maharashtra and Karnataka, hindering proper sugarcane crop development. Conversely, several districts in Uttar Pradesh faced devastating floods; prolonged waterlogging in sugarcane fields is damaging the crop. In some areas, the crop is also threatened by pests and diseases.

Most analysts believe that for the third consecutive year—the 2026-27 season—sugar production will fall short of domestic demand and requirements, while the industry will lack substantial carry-over stocks. The government is considering halting the use of sugarcane juice, syrup, and 'B-heavy' molasses for ethanol production. Sugar exports have already been suspended, and there appears to be no likelihood of permitting shipments during the 2026-27 marketing season (October–September). Some analysts believe that domestic sugar production could fall short of expectations in the 2027-28 marketing season as well.