Sugar mills in Uttar Pradesh, the country’s largest sugar-producing state, have reported a decline in sugar output during January, dealing a setback to the ongoing 2025–26 crushing season. Industry sources attribute the dip primarily to lower cane recovery and uneven cane availability across key producing districts.
January is traditionally one of the peak months for sugar production, and any slowdown during this period has a direct impact on overall seasonal output. According to industry officials, mills faced challenges such as delayed cane arrivals, lower sucrose content in certain regions and adverse weather conditions earlier in the season, which affected crop quality.
The reduced recovery rate — a critical factor determining sugar yield from crushed cane — emerged as a major concern for millers. While cane crushing continued across most districts, the output did not match expectations set at the beginning of the season. Some mills also witnessed operational inefficiencies due to logistical issues and intermittent disruptions in cane supply.
The dip in January production comes at a time when mills are already grappling with tight margins amid rising input costs and regulated sugar prices. Industry experts note that while ethanol diversion has helped improve cash flows for some mills, lower sugar output could still affect overall revenue realisation for the season.
Uttar Pradesh plays a pivotal role in India’s sugar economy, contributing a significant share to national production. Any sustained decline in output from the state could influence domestic sugar availability and policy decisions related to exports, stock management and price stability.
However, industry stakeholders remain cautiously optimistic that production may stabilise in the coming months, depending on cane availability and recovery trends in February and March. Weather conditions and the pace of crushing operations will be key determinants going forward.
The January slowdown has once again highlighted the vulnerability of sugar production to climatic factors and agronomic conditions, reinforcing the need for long-term interventions such as improved cane varieties, better farm practices and enhanced supply chain efficiency to support the sustainability of the sugar sector in Uttar Pradesh.