I. Global Scenario
After 2 big global sugar surplus years during 2017-18 and 2018-19, global sugar balance sheet has been continuing in deficit till year 2024-2025.
After 6 years of global deficit years, year 2025-2026 has been the first year of global sugar surplus. As per ISO, during year 2025-26, there is estimated to be global sugar surplus of 1.22 million mt due to higher production numbers in all major sugar producing countries including Brazil, India and Thailand. Year 2026-27 is also estimated to global sugar surplus where Covrig Analytics has estimated global sugar surplus to 800,000 MT.
Sugar trader Czarnikow has estimated global sugar surplus to 1.1 Million mt during year 2026-27. Sugar surplus in global balance sheet had also its bearing on sugar prices where sugar prices had touched 5 years low during the year.
During Sugar Year 2024-2025, Government of India allowed export quota of 1.0 million mt sugar our of which country could export a quantity of around 0.9 million mt sugar.
With better crop estimates initially, during sugar year 2025-26, Government of India allowed export quota of 1.5 million mt and then sought willingness of sugar mills for another lot of export quota of 0.5 million mt. It is estimated that a quantity of around 0.7 million mt will be exported during the year due to depressed International prices and logistics constraints and higher cost due to ongoing middle east conflict.
International Sugar prices have seen volatility after start of middle east conflict during year 2026 and logistics restrictions also impacting free movement of sugar across the globe.
Going ahead, sugar surplus in system and depreciating currency like INR are bearish factors, higher crude oil prices, higher Ethanol prices will enable increased diversion of cane towards Ethanol in Brazil and are the bullish factors.
Sugar Price movement
Chart 1: The graph of ICE 11 (Raw Sugar) and LIFFE (White Sugar) exchange prices during last 3 years i.e., April 2023 – March 2026 is given below:-
From the above price graph of 3 years, it can be observed that Sugar price have significantly come down during the period. Both LIFFE (White Sugar) and ICE 11(Raw Sugar) have touched 5 years low during the period.
ICE 11 (Raw Sugar Prices)
Raw Sugar prices started from the level of 22.40 cents/pound on 1st April 2023, touched high of 27.95 during November 2023, low of 13.48 during February 2026 and closed at level of 15.52 cents / pound as on 31st March,2026.
LIFFE (White Sugar Prices)
White Sugar prices started from the level of 633.4 USD/MT as on 1st April 2023, touched high of 763.4 USD during November 2023, low of 376.1 USD/MT during February 2026 and closing level of 448.50 USD/MT as on March 2026.
Table 1: Global Balance Sheet
Unit : 000 metric tonnes, Raw value
| Year | Production | Consumption | Export | End Stocks |
| 2014-15 | 169373 | 167079 | 58419 | 93953 |
| 2015-16 | 163825 | 170287 | 66943 | 88362 |
| 2016-17 | 169073 | 172683 | 65442 | 86492 |
| 2017-18 | 179828 | 170420 | 63460 | 96543 |
| 2018-19 | 174435 | 169315 | 57639 | 103525 |
| 2019-20 | 167866 | 168492 | 65717 | 102950 |
| 2020-21 | 168702 | 169266 | 64858 | 102544 |
| 2021-22 | 172189 | 176066 | 67663 | 98801 |
| 2022-23 | 175473 | 177344 | 68446 | 96919 |
| 2023-24 | 181047 | 181207 | 70533 | 98304 |
| 2024-25 (P) | 176060 | 179520 | 64800 | 93180 |
| 2025-26 (P) | 181290 | 180070 | 64320 | 93300 |
Source : ISMA / ISO, Year (Oct-Sept)
From the above graphs for the Year April 2025-March 2026 it can be seen, sugar prices has come down quite significantly.
ICE 11 price started from the level of 19.35 cents as on 1st April 2025, touched high of 19.59 cents in same month, low of 13.48 cents during Feb 2026, with closing 15.52 cents as on 31st March 2026.
LIFFE price started from the level of 545.9 USD/mt, touched high of 552.9 USD/mt in same month, touched low of 376.1 USD/mt during Feb 2026 month, with closing level at 448.5 USD/mt as on 31st March 2026.
Influence factors during the Year 2025-26 India
After having exported record 11.1 million mt during 2021-22 and 6.4 million mt during 2022-23, India has been absent from export market during 2023-24 and a small quantity of 0.9 million was exported during 2024-25. During 2025-26, Government of India allowed export quota of 1.5 million mt sugar and then allowed quota of 0.5 million mt to willing sugar mills. However, International market conditions had been bearish during the year due to global surplus and further export quota from India dampened the spirit. After start of middle east conflict, logistics constraints and higher logistics cost also became a deterrent for exports from India. It is estimated that a quantity of 0.7 million mt will be exported from India during 2025-26.
Year 2025-26 sugar production was pegged higher initially at level of gross production of 34 – 35 million mt. However final figure is now coming near to 30.8 million mt gross production level and net sugar production at level of 27.8 million mt.
Year 2026 is estimated to El-nino year which may affect monsoon season and as per IMD, monsoon season during 2026 is estimated to below normal which may affect the crop not only during 2026-27 season but also sowing for the season 2027-28.
Indian sugar has always been an influence factor for global balance sheet and prices.
Brazil CS
Table 2: Cane Crush / Sugar Production / Ethanol Production – Brazil CS
| Particulars | Unit | 2022/2023 | 2023/2024 | 2024/2025 | 2025/2026 |
| Actual \u2013 Year (April \u2013 March) | |||||
| - Total cane crush | Million MT | 548.28 | 654.45 | 621.93 | 611.15 |
| - Sugar Production | Million MT | 33.73 | 42.42 | 40.18 | 40.43 |
| Ethanol Production | Billion Litres | 28.91 | 33.59 | 34.96 | 33.72 |
| Diversion of Cane | |||||
| Used for sugar | % | 45.90 | 48.87 | 48.06 | 50.38 |
| Used for ethanol | % | 54.10 | 51.13 | 51.94 | 49.62 |
| TRS | 140.80 | 139.22 | 141.09 | 137.79 | |
Source: UNICA
From the above figures, it can be observed that during year 2023-2024, Brazil CS crushed all time high record cane of 654.45 million mt as against cane crush of 548.28 million mt during 2022-2023. Due to better price parity with sugar, diversion of cane towards sugar was also higher at level of 48.87% during 2023-24 as against 45.9. 0% during 2022-2023 Cane diversion towards Sugar was at record low level of 34.33% during year 2019-2020.
During 2023-2024, Brazil CS has produced record sugar at 42.42 million mt as against 33.73 million mt during 2022-23.
During year 2024-2025, cane crush has gone down marginally to level of 621.93 million mt and with diversion of 48.06% cane towards sugar, Brazil CS produced a quantity of 40.18 million mt sugar.
During 2024-2025, quality of cane i.e., TRS has also improved to 141.09 as against 139.22 last year, though TRS is still far behind from level of 144.72 during 2020-21.
Ethanol production in Brazil CS during 2023-2024 increased to 33.59 billion litres from level of 28.91 billion litres during 2022-2023. During 2024-2025, Ethanol production has further increased to the level of 34.96 billion litres.
During Year 2025-26, while Cane crush has marginally come down by 1.7% to level of 611.15 million mt, sugar production is marginally higher by 0.6% to level of 40.43 million mt because of higher diversion of cane towards Sugar.
During 2025-26, diversion of cane towards Sugar was higher till 1st half of year upto 54% and thereafter due to weak sugar prices and better price parity for Ethanol diversion of cane towards sugar has come down such that average diversion during the year is 50.38%.
During the year 2026-27, it is estimated that diversion of cane towards Sugar will come down.
Thailand
| Particulars | Year 2024/25 | Year 2025/26 | Year 2026-2027 |
| Area Planted (Million HA) | 1.66 | 1.67 | 1.65 |
| Area Harvested (Million HA) | 1.57 | 1.58 | 1.56 |
| Cane production (Million MT) | 95.90 | 103.00 | 95.00 |
| Sugar Production (Million MT) | 10.24 | 11.26 | 9.50 |
| Total Exports (Million MT) | 5.85 | 7.00 | 6.00 |
It can be observed that during Year 2025/26, Sugar production in Thailand increased from level of 10.24 million mt to 11.26 million mt i.e., increase by almost 10%.
During 2025-2026, Sugar production in Thailand is estimated to come down to level of 9.5 million mt i.e., dip of 15.6%.
Dip in Sugar production is estimated to have its bearing on Sugar exports which are estimated at level of 6.0 million mt during 2026-27 as against level of 7.0 million mt previous year.
Crude Oil
Crude Oil plays major influencing role for Sugar prices as it is one of the major macro factors and secondly crude oil prices affect diversion of cane towards ethanol in Brazil.
Chart 5: MOVEMENT OF CRUDE OIL PRICE (BRENT) – 1ST APRIL 2025 – 31ST MARCH 2026
During the year, crude oil price has started from level of 74.49 USD/ barrel as on 1st April 2025, touched low of 58.92 USD/barrel during December 2025 and level of 118.35 USD/barrel as on 31st March 2026. Crude Oil prices have seen extreme volatility after Feb 2026 onwards due to start of middle east conflict.
Currency Brazilian Real
Chart 6: Movement 1st April 2025 – 31st March 2026
During the Year (April – March) 2025-2026, Brazilian real has started from the level of 5.68 in beginning of April 2025, reached high of 6.01 during April 2025, lowest level of 5.13 during February 2026 and closed at level of 5.18 as on 31st March 2026.
Chart 7: Indian Rupee
INR has depreciated during 2024-25 (April – March), from the level of 85.6 as on 1st April 2025 to 93.5 as on 31st March 2026 i.e., depreciation of 9.2%.
During the year, the strongest level has been 84.3, weakest level has been 94.8.
World Sugar Balance – Year (Oct-Sept)
Unit: Million MT
| Particulars | 2025-26 | 2024-25 |
| Production | 181.29 | 176.06 |
| Consumption | 180.07 | 179.52 |
| Surplus / Deficit | 1.22 | -3.46 |
| Import Demand | 63.22 | 64.73 |
| Export availability | 64.32 | 64.80 |
| End stocks | 93.30 | 93.18 |
| Stocks / Consumption ratio in % | 51.81 | 51.91 |
| Updated during Feb 2026 |
Source: ISO
Year 2026-2027
Green Pool Commodity Specialists last week raised their global 2026-27 sugar deficit estimate to -4.30 million mt from a previous estimate of -1.66 million mt, citing a shift to higher ethanol production at the expense of sugar.
Covrig Analytics cut its 2026/27 global sugar surplus estimate to 800,000 MT from 1.4 Million mt previously.
II. Indian Scenario
Indian Sugar Industry since last 16 years was continuing to be sugar surplus position throwing opportunities in terms of sugar exports, diversion of sugar towards Ethanol.
However, year 2024-2025 and 2025-2026 have witnessed reduction in sugar production majorly due to weather-related issues in the state of Maharashtra and Karnataka and cane-variety issues in state of U.P.
During these 2 years, while Gross Sugar production is higher than consumption but Net Sugar production (after diversion of sugar towards Ethanol) is lower than consumption.
Other than reduced cane availability and capacity utilization issues, Industry has also faced lower sugar recovery during these 2 years which has severely affected the viability of sector.
Good part is that despite lower sugar production levels, Government continued with aggression in policy terms by regularly giving Sugar export quotas and allowing diversion of Sugar towards Ethanol.
This has helped Industry to realise higher sugar prices in International market, improve upon funds flow and utilization of Distillation capacity by diverting Sugar in terms of B heavy Molasses / Sugar Syrup towards manufacturing of Ethanol.
With adequate usage of sugar produced, sugar stocks have also come down to record low levels, which helped Sugar Industry in terms of reduced inventory carrying cost. In fact, earlier, higher sugar inventory carrying cost and deteriorating sugar quality during storage had been a big burden for the Industry which during last 2 years has eased off.
During Year 2025-2026, closing stocks of Sugar are estimated at all time low level of 4.1 million mt which is 14.6% of domestic consumption.
Governments policy support is such that despite such low stocks of sugar, there has always been adequate sugar availability in market, no abnormal surge in sugar prices, no volatility of any kind and ultimately a win-win situation for all i.e., farmers, consumers and sugar mills.
In last 2 years, it is seen that there are wide variations in between initial sugar production estimates and final sugar production numbers.
At start of the year 2024-2025, ISMAs All India Gross Sugar Production estimate (before diversion towards Ethanol) was pegged at 33.3 million mt which later got reduced to 31.0 million mt and then to 29.9 million mt as against actual number of 29.6 million mt. So, there was deviation of 3.7 million mt (11.1%) in between initial estimate and final number.
Similarly for the Year 2025-2026, ISMAs initial estimate for gross sugar production has been 34.3 million mt and some of the estimates were as high as 35 million mt against which final gross sugar production is now estimated at level of 30.9 million mt which means deviation of 10.0% plus.
On sugar export front, sugar exports continue to be in restricted category and are allowed against specific Government quotas.
During 2023-24, Government has not allowed any sugar export quota depriving Indian sugar sector of capitalizing higher sugar prices.
During the year 2024-25, Government has allowed sugar export quota of 1.0 million mt which has helped Industry in improvement of domestic sugar prices, capitalizing on higher international prices and removing the surplus sugar helping with better cash flow for Industry.
During 2025-2026, Government has allowed export quota of 2.0 million mt in 2 lots of 1.5 million mt to all sugar mills in proportion to their production and 0.5 million mt to willing sugar mills. It is estimated that against this quota of 2.0 million mt, a quantity of just 0.7 million mt will be exported due to 5 years low International sugar prices and logistics bottlenecks due to middle east conflict. Major exports have been of Low-Quality White Sugar (Sulphitation sugar) majorly supported by strong USD currency, regional demand with strong FOB premiums.
For sugar prices, Industry continues to press hard for its demand of increase in Sugar MSP which was last fixed during the year 2019 at level of Rs. 3100 per qtl. As per media reports, Government was considering increase of Sugar MSP to levels of Rs. 3800 per qtl., but till date Govt.s favorable decision is awaited. Since the year 2019 when MSP was last fixed at Rs. 3100 per qtl., Cane price (FRP) has increased by 29.5 % from Rs. 275 per qtl (linked with 10% recovery) to Rs. 365 per qtl (linked with 10.25% recovery) for the year 2026-27 and Cane (UP – SAP – Early variety) has increased by 23.1 % from Rs. 325 per qtl to Rs. 400 per qtl, but no increase in sugar MSP.
Sugar prices continue to prevail below production costs and during crushing period with increasing demand for funds and sugar availability prices come to alarmingly low levels.
Industry Associations continue to represent to Government to increase Sugar MSP in line with increasing cost and indexing of sugar MSP with cane price such that with every increase in cane price by Government, Sugar MSP gets increased automatically.
On the Ethanol front, year 2025-2026 is the third year in a row when the Government has not increased prices for B heavy and Sugar Syrup based Ethanol.
During Ethanol year 2023-24 (Nov-Oct), the Government has in between restricted production of Ethanol from B heavy / Sugar Syrup due to estimated shortage of sugar for domestic market. On 29th August 2024, Government opened this restriction and allowed production of Ethanol from B heavy / Sugar Syrup to extent of OMCs orders in hand.
Since last 2 years, Industry has not been getting complete allocation of offered Ethanol quantities. During Year 2024-25, Government had issued cycle – I of tender for C Molasses / B heavy /Syrup Ethanol / Grain Ethanol where a quantity of 391.3 crore had been bid from Sugar route (C Molasses / B Heavy / Syrup Ethanol), against which initially Government has placed orders for a quantity of 311.9 crore litre i.e., 79.7% of bid quantity.
Thereafter no further tender cycle was floated by Oil companies for B Heavy molasses / Syrup Ethanol. During 2025-2026 in cycle – I, Industry could get order of 288.5 crore litre Ethanol through sugar route against bid of 472 crore litres which is 61.1% of bid quantity.
There is a clear case of oversupply in market and ways and means to be worked out to increase demand of Ethanol to take care of surplus distillation capacity.
Government actively working on increasing the demand for Ethanol in terms of increasing blending percentage beyond 20%, introduction of flexi-fuel vehicles which can take higher blend of Ethanol E85/ E100, working on Ethanol cooking stoves, prospects of Ethanol blending with diesel and Sustainable Aviation Fuel (SAF). Increase in Ethanol consumption is also need of the hour in view of benefits it brings in terms of reduced dependence on imports, savings of forex which is very critical during middle east conflict related issues whole world is facing.
Since Government has not increased prices of B heavy and Syrup ethanol, current ethanol prices are not viable in line with the cost, therefore many of the Mills / groups more particularly in state of U.P. are prioritizing sugar production over ethanol keeping Ethanol manufacturing capacities idle.
Year 2026 is estimated to be El-Nino and monsoon is estimated to be below normal at level of 90-95% of Long Period Average (LPA).
Since Year 2024 and 2025 have been normal monsoon years, there is no indication of any production shortfall for the Year 2026-2027.
As per US Department of Agriculture (USDA), during 2026-2027, there is estimated to be 12% increase in Sugar production (raw value) from 30.0 million mt to 33.6 million mt.
While there is no other official estimate available for the Year 2026-2027, various analysts are pegging their numbers higher by 1.0 – 1.5 million mt as compared to last year.
So overall Industry is facing issue of lower cane availability, underutilization of Sugar plant capacity, lower sugar recovery, no increase in Sugar MSP, no increase in Ethanol prices and non-availability of adequate Ethanol orders resulting into underutilization of Distillery capacity.
It is utmost required to address the volatility in sugar production, declining productivity and recovery, cane varietal issues, weather related vagaries and therefore it is high time now that Industry under support and guidance from the Government sources starts working on better cane varieties, Artificial Intelligence usage for improved cane productivity, better water conservation mechanisms like drip irrigation, rainwater harvesting, trash shedding and mulching, etc. for optimum productivity.
For policy related matters including Sugar MSP, Ethanol prices and increasing Ethanol consumption, Government is understandably considering Industry demand on all fronts.
Chart 8: Declining Sugar Production
During year 2021-22 All India Gross Sugar production reached all time high level of 39.0 million mt and thereafter it is on continuous decline.
During 2024-25, Gross Sugar production has touched lowest level of 29.6 million mt and net sugar production at level of 26.1 million mt in last 5 years. While for the Year 2025-26, gross sugar production is estimated to touch 30.9 million i.e., increase by 4.4% as against last year, it is much lower than initial estimates in range of 34.0 – 35.0 million mt and also lower than levels achieved before Year 2024-25. The dip in sugar production during 2024-25 and 2025-26 is mainly attributed to weather, cane variety, and crop disease related issues.
Chart 9: Dipping Sugar Exports
During Year 2020-21 to 2022-23, country achieved Sugar exports figures of 7.2 million mt, 11.1 million mt and 6.4 million mt respectively.
Thereafter, due to the dip in sugar production, sugar export numbers have also come down in the last 3 years. After having touched an all-time high of 11.1 million mt during 2021-22, sugar exports were almost nil during 2023-24 due to no Government permissions. It is during 2024-25, Government has allowed sugar export to 1.0 million mt against which a quantity of 0.9 million mt sugar got exported. During 2025-26, Govt. allowed export quota of 2.0 million mt against which it is estimated that a quantity of 0.7 million mt will get exported.
Chart 10: Volatility in diversion of sugar towards Ethanol
Till year, 2022-23, diversion of Sugar towards Ethanol (in form of B heavy Molasses and Sugar syrup) was increasing every year in line with blending percentage.
However, 2023-24 onwards, Government started regulating sugar diversion towards Ethanol due to lower production figures and Govt.s priority to ensure adequate availability for domestic consumption.
Further, no price increase has been allowed from B Heavy and Syrup Ethanol since year 2023-24 making it unviable for supplies.
During year 2022-23, a quantity of 3.8 million mt sugar was diverted towards Ethanol and thereafter this diversion got reduced to 2.2 million mt sugar during 2023-24, 3.5 million mt during 2024-25 and 3.1 million mt estimated to be diverted during 2025-26.
Space leftovers by Sugar based Ethanol have been captured by Grain based Ethanol as now more than 70% Ethanol supplies come from grain route.
Chart 11: Sugar consumption
As per the above figures, while there is an increase in consumption from the level of 26.6 million mt during 2020-21 to the level of 29.0 million mt during 2023-24, consumption has come down to the level of 28.1 million mt during 2024-25 and is estimated to come down to 28.0 million mt during 2025-26.
As per trade during 2023-24, there had been reported movement of around 0.7 million mt sugar to neighboring countries like Bangladesh through porous borders which is also included in overall consumption figure because of which consumption is coming at higher level of 29.0 million mt.
During 2024-25 and 2025-26, there is no such movement of sugar to other countries and therefore consumption has come down to around 28.0 million mt.
It is seen that due to increasing health consciousness, Government awareness campaigns, consumption of sugar is getting affected.
Earlier there use to be growth in sugar consumption figures by 1.5 – 2.0% levels which is not seen in last 2 years.
Gross Sugar production higher than consumption
Since 2010-11 (last 16 years), Gross sugar production has always been more than consumption except for one year 2016-17 when sugar production was lower than consumption due to drought.
Chart 12: The graphical representation of the last 16 years gross sugar production v/s consumption is as below: -
Very interestingly before 2010-11, sugar production was more cyclical in nature where after every 2-3 years of surplus there is a period of deficit Sugar production which use to act as balancing factor for surplus Sugar production.
Chart 13: The graphical representation of cyclical sugar production during the period 1980 till 2010 is as below: -
Sugar stocks below 20% of consumption
During the year 2024-2025, sugar closing stocks were at a level of 5.0 million mt which is 17.8% of consumption levels.
During 2025-2026, sugar stocks are estimated to further come down to level of 4.1 million mt which will be 14.6% of estimated consumption level.
In the last 15 years, there have been only 2 instances before 2024-2025, when sugar stocks have gone down below level of 20% of domestic consumption.
The first instance was during 2016-17 when sugar stocks were closing 3.9 million mt which was 15.8% of domestic consumption and second one during 2022-23 when sugar stocks were 5.6 million mt which was 19.9% of domestic consumption.
Sugar stocks of 2025-26 are quite a balance position where on one hand has helped sugar Industry in maintaining the sugar prices and liquidation of surplus sugar easing cash flow issues on other hand stock level is sufficient to take care of countrys requirement before start of new season.
State-wise Sugar Production
Table 3: State-wise Sugar Production on All India basis since the Year 2018-19 given below in Table: -Year: Oct to Sept
| SUGAR PRODUTCTION (MILLION TONNES) | ||||||||
| States | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
| (Estimate) | ||||||||
| Uttar Pradesh | 11.82 | 12.64 | 11.06 | 10.20 | 10.48 | 10.41 | 9.29 | 8.97 |
| Maharashtra | 10.72 | 6.17 | 10.65 | 13.72 | 10.59 | 11.10 | 8.10 | 9.92 |
| Karnataka | 4.43 | 3.49 | 4.47 | 6.04 | 5.66 | 5.19 | 4.26 | 4.90 |
| Gujarat | 1.12 | 0.93 | 1.05 | 1.21 | 1.00 | 0.93 | 0.89 | 0.75 |
| Tamil Nadu & Pondicherry | 0.96 | 0.79 | 0.88 | 1.25 | 1.48 | 1.07 | 0.68 | 0.70 |
| Punjab | 0.79 | 0.54 | 0.55 | 0.60 | 0.66 | 0.59 | 0.57 | 0.44 |
| Bihar | 0.84 | 0.73 | 0.48 | 0.46 | 0.63 | 0.69 | 0.61 | 0.58 |
| Haryana | 0.70 | 0.74 | 0.76 | 0.72 | 0.75 | 0.61 | 0.52 | 0.46 |
| M.P. & C.G. | 0.56 | 0.46 | 0.54 | 0.65 | 0.60 | 0.68 | 0.54 | 0.46 |
| Rajasthan | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Uttrakhand | 0.40 | 0.46 | 0.42 | 0.45 | 0.49 | 0.31 | 0.38 | 0.29 |
| Andhra Pradesh | 0.51 | 0.29 | 0.20 | 0.21 | 0.19 | 0.16 | 0.09 | 0.08 |
| Telangana | 0.26 | 0.14 | 0.12 | 0.23 | 0.26 | 0.18 | 0.16 | 0.21 |
| Others | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| All India | 33.16 | 27.41 | 31.19 | 35.76 | 32.82 | 31.96 | 26.12 | 27.80 |
Source: ISMA
The above figures are net sugar production figures and diversion of Sugar towards Ethanol is in addition. During the year 2021-22, Country has achieved record sugar production of 35.76 million MT and became the largest sugar producer in World surpassing Brazil.
During the Year 2022-23, the countrys Sugar production has taken a dip of almost 8.2% due to a 22.8% dip in Sugar production in State of Maharashtra and 6.3% in state of Karnataka.
During the Year 2023-24, the countrys sugar production has taken a dip of 2.6% due to dip in UP, Karnataka and Tamil Nadu.
During 2024-25 net sugar production further came down to level of 26.12 million mt with UP, Maharashtra and Karnataka all at alarmingly low production levels. During 2024-25, production is down by 18.3% on All India basis, 10.75% in state of U.P., 27.03% in state of Maharashtra and 17.9% in state of Karnataka, as compared to last year.
Net sugar Production level of 26.12 million mt on All India is lowest since year 2016-17 when country produced 20.3 million mt Sugar.
Year 2025-26 started with a bang with estimates of improved production numbers in state of Maharashtra and Karnataka as year 2024 and 2025 had been normal monsoon years. Initial estimates of net sugar production were in 31.0 – 32.0 million mt, however, during the year due to dip in yield and recovery of cane, net sugar production is now estimated at level of 27.8 million mt which is still higher by 6.4% as compared to last year.
During the year 2025-26, while net sugar production in state of Maharashtra and Karnataka has increased, it has come down in state of U.P.
During year 2025-26, net sugar production in state of UP is estimated at level of 8.97 million mt lower by 3.4%, in Maharashtra at level of 9.92 million mt higher by 22.46% and in Karnataka at level of 4.90 million mt higher by 15.0% as against last year.
U.P. and Maharashtra keep on changing slot of number 1 sugar producing state in country. In can be observed from the table that for 3 years (18-19 to 20-21) U.P. was the leading sugar producing state in country. For the next 3 years (21-22 to 23-24), Maharashtra became the leading producer and coming to the year 2024-25, U.P. again regained the position of leading sugar producer. It is estimated that in the year 2025-26, Maharashtra will again take slot of number 1 sugar producing state in country.
Table 4: State wise Yield of Sugarcane (Tonnes/Hectare)
The details of yields of various states are given below from where it can be seen how the productivity in terms of yield has changed.
Year: Oct to Sept
| STATE-WISE YIELD OF SUGARCANE IN INDIA (TONNES PER HECTARE) | |||||||
| States | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
| Andhra Pradesh & Telangana | 65.0 | 51.0 | 45.2 | 54.1 | 55.5 | 48.2 | 36.7 |
| Bihar | 66.0 | 61.0 | 49.0 | 49.6 | 65.9 | 66.0 | 59.6 |
| Gujarat | 69.0 | 59.0 | 65.8 | 69.5 | 53.7 | 52.0 | 48.3 |
| Haryana | 72.0 | 76.0 | 79.4 | 80.7 | 75.2 | 70.2 | 65.5 |
| Karnataka | 91.0 | 92.0 | 99.5 | 116.5 | 102.5 | 92.3 | 90.1 |
| M.P & Chattisgarh | 74.0 | 66.0 | 68.6 | 78.5 | 74.4 | 80.0 | 69.0 |
| Maharashtra | 85.0 | 77.0 | 97.1 | 107.6 | 80.1 | 79.2 | 67.8 |
| Punjab | 86.0 | 69.0 | 78.0 | 82.1 | 81.8 | 77.0 | 72.4 |
| Tamil Nadu | 73.0 | 70.0 | 72.2 | 88.4 | 93.9 | 83.4 | 67.4 |
| Uttar Pradesh | 71.0 | 70.0 | 67.9 | 67.2 | 68.6 | 63.6 | 62.0 |
| Uttarakhand | 60.0 | 67.0 | 68.0 | 69.9 | 77.5 | 54.8 | 61.5 |
| All India | 75.3 | 71.1 | 76.0 | 82.7 | 75.7 | 71.2 | 65.5 |
Source: ISMA
From above, it can be seen that All India peak yield was achieved during 2021-22 at level of 82.7 tonnes/ hectare.
After 2021-22 cane yields have continuously declined and have come down by 20.8% since then with 2024-25 yields at 65.5.
During 2024-25, Karnataka state has been the top performer with yields at level of 90.1, followed by Punjab at 72.4 then, MP & Chattisgarh at 69.0, Maharashtra at 67.8 and Tamil Nadu at 67.4.
Haryana at 65.5, Uttar Pradesh at 62.0, Uttarakhand at 61.5 and Bihar at 59.6 levels have been mid-level performers.
Gujarat at level of 48.3 and AP & Telangana at level of 36.7 comes in category of poor performers. So, agricultural yields have significantly come down over the years which on one hand is direct loss to farmers on other hand Sugar mills are starving for raw material leading to under capacity utilization of their plants. It is high time that a campaign is launched to improve yield levels which is possible with better farm practice, replacement of old underperforming cane varieties with new potential ones, water conservation mechanisms.
Table 5: Statewise Recovery of Sugar in % of Cane
| State-wise Recovery of Sugar in % of Cane | ||||||||||||||
| State | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | |||||||
| Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | |
| Andhra Pradesh | 9.46 | 9.40 | 9.27 | 8.96 | 9.21 | 8.85 | 9.47 | 8.88 | 9.19 | 8.39 | 8.69 | 8.32 | 8.07 | 7.08 |
| Bihar | 10.39 | 10.39 | 10.81 | 10.79 | 10.91 | 10.36 | 10.83 | 9.66 | 10.49 | 9.46 | 10.88 | 10.18 | 10.29 | 9.80 |
| Gujarat | 10.82 | 10.82 | 10.75 | 10.75 | 10.25 | 10.22 | 10.64 | 10.52 | 10.73 | 10.70 | 10.37 | 10.37 | 10.23 | 10.20 |
| Haryana | 10.40 | 10.36 | 10.58 | 10.58 | 10.26 | 10.26 | 9.86 | 9.47 | 10.04 | 9.70 | 9.96 | 9.72 | 9.64 | 9.33 |
| Karnataka | 10.99 | 10.73 | 10.55 | 9.94 | 10.90 | 9.80 | 10.76 | 9.65 | 10.78 | 9.27 | 10.12 | 9.01 | 10.45 | 8.10 |
| Kerala & Goa | 7.58 | 7.58 | - | - | - | - | - | - | - | - | - | - | - | - |
| Madhya Pradesh | 9.95 | 9.93 | 9.93 | 9.89 | 9.79 | 9.38 | 10.24 | 9.41 | 10.25 | 9.06 | 10.37 | 9.57 | 10.56 | 9.21 |
| Chhattisgarh | 9.64 | 9.64 | 9.68 | 9.68 | 11.09 | 11.09 | 11.55 | 11.55 | 10.89 | 10.89 | 11.68 | 10.86 | 11.11 | 9.81 |
| Maharashtra | 11.40 | 11.27 | 11.54 | 11.28 | 11.20 | 10.50 | 11.18 | 10.38 | 11.21 | 10.02 | 11.03 | 10.32 | 10.95 | 9.48 |
| Punjab | 10.17 | 10.14 | 9.62 | 9.59 | 9.52 | 9.02 | 10.18 | 9.29 | 9.73 | 9.70 | 9.49 | 9.38 | 9.14 | 9.00 |
| Rajasthan | 9.18 | 9.18 | 8.03 | 8.03 | 7.42 | 7.42 | 8.43 | 8.43 | 7.11 | 7.11 | 8.48 | 8.48 | 8.44 | 8.44 |
| Telangana | 10.79 | 10.65 | 10.63 | 10.22 | 10.50 | 10.33 | 11.17 | 10.77 | 10.78 | 10.66 | 10.65 | 10.65 | 10.22 | 10.22 |
| TN & Pondicherry | 8.80 | 8.80 | 8.68 | 8.54 | 9.04 | 8.97 | 9.15 | 9.02 | 9.24 | 9.23 | 8.76 | 8.72 | 8.24 | 8.15 |
| Uttar Pradesh | 11.48 | 11.46 | 11.63 | 11.29 | 11.45 | 10.78 | 11.19 | 10.04 | 10.82 | 9.54 | 11.22 | 10.61 | 10.56 | 9.70 |
| Uttarakhand | 10.97 | 10.97 | 11.20 | 11.20 | 11.07 | 10.99 | 10.94 | 10.38 | 10.68 | 10.14 | 10.80 | 10.18 | 10.33 | 9.59 |
| Others - Assam, Nagaland & West Bengal | 9.75 | 9.75 | 8.97 | 8.97 | 9.11 | 9.11 | 9.20 | 9.20 | 9.97 | 9.97 | 9.28 | 9.28 | 8.96 | 8.96 |
| All India | 11.10 | 11.01 | 11.15 | 10.84 | 11.03 | 10.36 | 10.93 | 10.03 | 10.79 | 9.67 | 10.73 | 10.05 | 10.50 | 9.26 |
Year: Sugar Year (Oct – Sept)
In state of Maharashtra, Gross Sugar reovery was at its peak during 2019-20 at level of 11.54 and afterwards it has come down continuously with 2024-25 level at 10.95.
Simiarly, in state of Karnataka, Gross sugar recovery was at its peak at level of 10.99 during 2018-2019 and thereafter has come down with level of 10.45 during 2024-25.
UP state has suffered the most where its peak gross recovery level was 11.63 during 2019-20 and afterwards continuous dip in recovery levels with gross recovery level at 10.56 during 2024-25.
In state of Maharashtra and Karnataka, gap between gross sugar recovery levels (before sugar diversion towards ethanol) and net sugar recovery levels (after sugar diversion towards ethanol) is higher than national average and also UP state. It reflects higher production of Ethanol from B heavy Molasses and Syrup route in state of Maharashtra & Karnataka as compared to UP.
Going ahead, there is a sizeable scope for improvement of sugar recovery which can lead to a much bigger boost in sugar production.
All India Sugar Balance Sheet
Table 6: Estimated All India Sugar Production, Sales, and Stock - ISMA: -
Unit: Million MT
| Particulars | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
| Actual- ISMA | Estimate- Trade | |||||||
| A. Total availability \u2013 | ||||||||
| All India | ||||||||
| a) Opening Stock as on Oct 01 | 10.7 | 14.6 | 10.7 | 8.2 | #7.0 | 5.6 | #7.9 | 5.0 |
| b) Gross Production during season (before diversion towards Ethanol) | 33.7 | 28.2 | 33.2 | 39.0 | 36.6 | 34.1 | 29.6 | 30.9 |
| c) Diversion of Sugar towards Ethanol in form of B Heavy Molasses / Syrup | 0.5 | 0.8 | 2.0 | 3.2 | 3.8 | 2.2 | 3.5 | 3.1 |
| d) Net Production during season (after diversion towards Ethanol) | 33.2 | 27.4 | 31.2 | 35.8 | 32.8 | 32.0 | 26.1 | 27.8 |
| e) Imports | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total supply availability | 43.9 | 42.0 | 41.9 | 43.9 | 39.8 | 37.5 | 34.0 | 32.8 |
| B. Total Sugar Offtake | ||||||||
| - All India | ||||||||
| a) Internal consumption | 25.5 | 25.3 | 26.6 | 27.3 | 27.9 | 29.0 | 28.1 | 28.0 |
| b) Exports | 3.8 | 6.0 | 7.2 | 11.1 | 6.4 | 0.1 | 0.9 | 0.7 |
| Total Offtake | 29.3 | 31.3 | 33.7 | 38.4 | 34.3 | 29.1 | 29.0 | 28.7 |
| C. Closing Stock as on Sept 30- All India | 14.6 | 10.7 | 8.2 | 5.5 | 5.6 | 8.5 | 5.0 | 4.1 |
| D. Stock as % of Internal Consumption (%) | 57.2 | 42.4 | 30.8 | 20.3 | 19.9 | 29.2 | 17.8 | 14.6 |
#As reconciled with Government data.
Souce: ISMA/Trade.
Sugar Production: It can be seen from the above table that during 2025-2026, gross sugar production is estimated at 30.9 million mt and net sugar production at level of 27.8 million mt which is lower than estimated consumption. Current production estimates are way lower than initial estimates for the season which were as high as 35.0 million mt for Gross sugar production and 31 – 32 million mt for net sugar production.
Consumption: During Feb/ March-2026 month, it was estimated that Sugar consumption has been affected due to issue of LPG in hotels, restaurants, Institutions, etc. However, since April month consumption levels have been normalised. During 2025-26, it is estimated that overall consumption will be 28.0 million mt almost same as that of last year.
Sugar Exports:
Due to viability issue, logistics constraints and cost, it is estimated that total sugar exports should be around 0.70 million mt as against Government quota of 2.0 million mt.
Stock: There is estimated to be dip in closing stocks of Sugar from 5.0 million mt to 4.1 million mt which is just 14.6% of estimated consumption and this sugar stock will be one of the lowest which will help in keeping sugar prices firm.
Policy initiatives by the Government
Sugar
Policies of Government in past of promotion of Ethanol blending , promoting soft loan for creating new Ethanol capacity, differential ethanol pricing in line with the cost, Sugar exports, giving exports quotas, export assistance, Sugar MSP, giving monthly domestic release, buffer stock, etc. has helped the Sugar sector a lot, lowered down Sugar stocks, cane arrears, cash flow issues with the industry to certain extent. Government has very efficiently manoeuvred the countrys balance sheet and has very timely allowed the usage of sugar including allowing exports, regulating sugar diversion towards Ethanol so that Sugar is first available for domestic market, followed by blending in form of Ethanol and lastly for exports.
In last 2 years, Farmers & Industry has suffered on account of loss in productivity in terms of yield and sugar recovery. Both Central & State Government, Industry Associations have been working on improvement in performance parameters of Industry like Sugar recovery, yield, development of new variety, better farm practices, water conservation, sorting out logistics bottlenecks, trade efficiency, better relations between Sugar Mills & trade, working on all issues for supply of Ethanol to oil companies i.e., for wholesome improvement of Industry.
However, last 2-3 years, Government is conservative in addressing the Sugar Industrys requirements like increase in MSP, increase in Ethanol prices in line with the cost, increase in ethanol blending percentage, under-utilisation of distillery capacity, etc.
Given below is the snapshot of policy initiatives by the Government in last few years: -
I. SUGAR a) Promoting Exports of Sugar
It was a challenge for Government to increase Export of Sugar from the country in line with requirement of excess Sugar because of highly fragmented Industry, each state having its own problems, coastal and non-coastal states working under different conditions, logistics bottlenecks and lastly price mismatch between International and domestic price.
Furnished below is a snapshot since the Year 2018-2019 on Sugar exports where Government motivated the industry by giving export quotas to Industry and related assistance in different forms as under: -
Sugar Year 2018-2019
On 28th Sept 2018, Government announced Mandatory Export Quota of 5.0 million MT on All India basis to be exported during Oct 2018 – Sept 2019. The mandatory export quota of 5.0 million MT was allocated amongst all Sugar Mills in country basis their Sugar Production of last 3 years.
Further, to boost Sugar Exports and for the purpose of offsetting cost of cane, Government announced following financial assistance: -
Government announced to pay defraying expenses towards Internal transport, freight, handling, etc. to Sugar Mills on Export of Sugar as under: -
- Rs. 1.0 per Kg for Sugar mills within 100 kms from Port.
- Rs. 2.5 per Kg for Sugar mills beyond 100 kms from port in coastal states.
- Rs. 3.0 per Kg for Sugar Mills in Non-coastal states.
Financial assistance of Rs. 13.88 per quintal of cane on cane crushed during the Sugar Year 2018-2019 subject to Sugar Mills complying with all the directives of Department of Food including exports quota and monthly release. The incidence of this financial assistance worked out to approx. Rs. 8.3 per kg on Sugar exported.
To facilitate and motivate Sugar exports, Department also decided to give additional Sale quota in domestic market to the ones exporting Sugar and reduce the domestic quota of the Sugar Mills not exporting Sugar.
Sugar Year 2019-2020
For the year 2019-2020, Government announced quota of 6.0 million MT Sugar exports on All India basis with export subsidy details as under: -
The Central Government agreed to provide assistance @ Rs. 10448 per MT assistance for expenses on export of sugar to the sugar mills in the following manner: -
For marketing including handling, quality up-gradation, de-bagging & re-bagging and other processing costs etc @ Rs. 4400 per MT.
For internal transport and freight charges including loading, unloading and fobbing etc. @ 3428.0 per MT.
For ocean freight against shipment from Indian Ports to the ports of destination countries etc @ Rs. 2620 per MT.
Total estimated assistance worked out to the tune of Rs. 6268.0 Crores by the Central Government for export of 6.0 million Tonne sugar.
Year 2020-2021
During the Year 2020-2021, Government announced Maximum Admissible Export Quantities (MAEQ) of 6.0 million MT and assistance of Rs. 6000 per MT as under: - For marketing including handling, quality up-gradation, debagging & re-bagging and other processing costs etc. @ Rs. 1600 per MT.
For internal transport and freight charges including loading, unloading & fobbing, etc. @ Rs. 2400 per MT.
For ocean freight against shipment from Indian ports to the port of destination countries etc @ 2000 per MT.
Later during the Year in the month of May 2021, the said assistance was reduced to Rs. 4000 per MT due to improved International Sugar Prices.
No export assistance provided from Government after Year 2020-2021, till date.
Year 2021-22
During the Year 2021-22, country achieved record sugar export of 11.1 million mt without any Government support and became the second largest exporter of sugar in world after Brazil.
Looking into excellent export parity from India and rising export numbers and to ensure sufficient availability of Sugar in domestic market, Government restricted Sugar exports and now allowing against specific export quotas.
On 24th May 2022, DGFT amended export policy of Sugar and put Sugar from Free category to Restricted category which initially valid till 31st October 2023. of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution.
Year 2022-23
On 5th Nov 2022, Department of Food & Public Distribution allowed export quota of 6.0 million MT proportionately spread amongst all Sugar mills of country basis their average Sugar production during last 3 Sugar seasons. Country could export a quantity of 6.4 million mt during the year against the quota given.
Year 2023-24
During the year, no sugar exports / quotas were allowed by Government and therefore no sugar exports happened from country.
Year 2024-25
During January 2025, Government allowed export quota of 1.0 million MT prorated amongst All India sugar mills basis their production of last 3 years.
Above quota of 1.0 million mt Sugar exports remained marginally unutilized and Industry could export a quantity of 0.9 million mt leaving balance un-exported quantity of 0.1 million mt.
Year 2025-26
During November 2025, Sugar export quota of 1.5 million mt was allowed to all Sugar Mills in country in proportion to their sugar production of last 3 years.
During Feb 2026, Government offered another round of export quota of 0.5 million mt to willing sugar mills in country which was to be allotted as per further terms and conditions. b) Maintaining Sugar Price in market MSP (Minimum Selling Price of Sugar)
Due to high Sugar production during 2018 resulting into excess Sugar supply in market, Sugar prices across the country started coming down and had come down below the cost of Production. To arrest falling Sugar prices, Government fixed Minimum uniform selling price of Sugar at Mill level, across the country as under: -
On 6th June 2018, Government approved fixing of Minimum Price of Rs. 29.0 per Kg for Sugar below which no Sugar Mill can sell in domestic market.
On 14th Feb 2019, Government increased MSP of Sugar from the level of Rs. 29 per Kg to Rs. 31 per Kg.
There has been no increase in MSP since Feb 2019 (more than 7 years now) and it is high time that Government should increase MSP in line with increasing cost in terms of cane price / other inputs to level of Rs. 42.0 per Kg which is also being pursued by Industry bodies. Further, it is suggested that Sugar MSP should be directly linked with FRP and for any increase in FRP, corresponding increase in MSP should come automatically. c) Cane Price State Advised Price (SAP)
U.P. State Government always showed rationale in fixing cane price in line with the cost.
Sugar year 2020-21 had been 3rd consecutive year in a row when the Cane SAP in state of U.P. remained unchanged at level of Rs. 315 per quintal for common variety of Cane, Rs. 325 per quintal for early variety of cane and Rs. 310 per quintal for rejected variety of cane.
It was during 2021-22 that U.P. State Government increased Cane price by Rs. 25 per quintal as under: -
| Early Variety : | From Rs. 325 per quintal to Rs. 350 per quintal |
| General Variety : | From Rs. 315 per quintal to Rs. 340 per quintal |
| Rejected Variety : | From Rs. 310 per quintal to Rs. 335 per quintal |
During 2022-23, U.P. State Government maintained the same price (SAP) of 2021-22 with no increase. During Year 2023-24, UP State Government increased cane price by Rs. 20 per Qtl, as under: -
| Early Variety : | From Rs. 350 per quintal to Rs. 370 per quintal |
| General Variety : | From Rs. 340 per quintal to Rs. 360 per quintal |
| Rejected Variety : | From Rs. 335 per quintal to Rs. 355 per quintal |
During 2024-25, U.P. State Government maintained the same price (SAP) of 2023-24 with no increase. During Year 2025-26, UP State Government increased cane price by Rs. 30 per Qtl, as under: -
| Early Variety : | From Rs. 370 per quintal to Rs. 400 per quintal |
| General Variety : | From Rs. 360 per quintal to Rs. 390 per quintal |
| Rejected Variety : | From Rs. 355 per quintal to Rs. 385 per quintal |
Fair & Remunerative Price (FRP): For the Sugar Year 2021-22, Central Government had increased the Cane FRP by Rs. 5 per quintal from the level of Rs. 285 per quintal to Rs. 290 per quintal linked with 10% Sugar recovery.
For every 0.1 percent increase in Sugar recovery above 10 percent, a premium of Rs. 2.90 per quintal will be paid by Sugar Mills.
Also, the government has made a provision for reduction in FRP by Rs. 2.90 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10 per cent but above 9.5 per cent.
However, for mills having a recovery of 9.5 per cent or below, the FRP is fixed at Rs. 275.5 per quintal. For Sugar Year 2022-23, Central Government further increased FRP to Rs. 305 per Quintal linked with 10.25% recovery.
For Sugar year 2023-24, Central Government increased cane FRP by Rs. 10 per qtl to level of Rs. 315/qtl for a basic recovery rate of 10.25%.
For the Sugar year 2024-2025, the Government increased Cane FRP by Rs. 25 per qtl. to Rs. 340 per quintal for a basic sugar recovery rate of 10.25%.
For Sugar year 2025-2026, Government increased Cane FRP by Rs. 15 per qtl. to Rs. 355 per quintal for a basic sugar recovery rate of 10.25%.
For Sugar year 2026-2027, Government increased Cane FRP by Rs. 10 per qtl. to Rs. 365 per quintal for a basic sugar recovery rate of 10.25%, providing a premium of 3.56/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by 3.56/qtl for every 0.1% decrease in recovery. There shall not be any deduction in the case of sugar mills where recovery is below 9.5% and such farmers will get Rs. 338.3/qtl for sugarcane.
II. ETHANOL
The government, both Central & State, has taken number of favorable policy measures which ensured the creation of Distillation capacity in line with the blending requirements and supply of Ethanol. Ethanol blending has increased from supply of 188.6 crore litres during 2018-19 at 5.0% blending level to level of 1003 crore litres during 2024-25 at 19.2% blending level.
It is mandatory to achieve 20% Ethanol blending w.e.f. 1st April 2026 and to achieve Research Octane Number (RON) of 95%.
Table 7: The supply and blending details of Ethanol from 2018-2019 as below: -
| ETHANOL SUPPLY DATA ALL INDIA- CRORE LITRES | |||||||||||||
| Ethanol Supply Year (Nov-Oct) | C Mol. | B Mol. | Syrup | Sub Total-Sugar route | % Supply-Sugar | Damaged Grain | Surplus Rice | Maize | Sub Total-Grain route | % Supply-Grain | Total | Blending % | |
| Sugar | Grain | ||||||||||||
| 18-19 | Actual Supply | 145.8 | 32.6 | 0.7 | 179.1 | 95.0 | 9.5 | 0.0 | 0.0 | 9.5 | 5.0 | 188.6 | 5.0 |
| 19-20 | 74.1 | 68.1 | 14.8 | 157.1 | 90.8 | 15.9 | 0.0 | 0.0 | 15.9 | 9.2 | 173.0 | 5.0 | |
| 20-21 | 38.1 | 178.7 | 38.2 | 254.9 | 86.2 | 38.5 | 2.2 | 0.0 | 40.7 | 13.8 | 295.6 | 8.1 | |
| 21-22 | 10.1 | 249.4 | 80.3 | 339.8 | 83.3 | 22.6 | 45.8 | 0.0 | 68.3 | 16.7 | 408.1 | 10.0 | |
| 22-23 | 5.6 | 235.3 | 128.4 | 369.3 | 72.9 | 31.9 | 73.7 | 31.5 | 137.1 | 27.1 | 506.4 | 12.0 | |
| 23-24 | 57.8 | 148.6 | 63.9 | 270.3 | 40.2 | 115.7 | 0.0 | 286.5 | 402.2 | 59.8 | 672.5 | 14.6 | |
| 24-25 | 17.0 | 137.0 | 162.0 | 316.0 | 31.5 | 76.0 | 133.0 | 478.0 | 687.0 | 68.5 | 1003.0 | 19.2 | |
| 25-26 | Bid in OMC tender | 14.0 | 159.0 | 299.0 | 472.0 | 26.6 | 76.0 | 396.0 | 832.0 | 1304.0 | 73.4 | 1776.0 | Target 20% |
| 25-26 | Quantity Allocated by OMCs | 12.2 | 110.5 | 165.9 | 288.5 | 27.5 | 47.6 | 233.3 | 478.9 | 759.8 | 72.5 | 1048.3 | |
| 25-26 | Allocation % of bid | 86.9 | 69.5 | 55.5 | 61.1 | 62.6 | 58.9 | 57.6 | 58.3 | 59.0 | |||
| 25-26 | Quantity received by Oil Co. till 31.03.2026 | 5.0 | 31.0 | 112.0 | 148.0 | 35.5 | 21.0 | 89.0 | 159.0 | 269.0 | 64.5 | 417.0 | |
State Government has extended various subsidies and benefits for creation of Distilleries more particularly in alcohol deficit states of Bihar, M.P., West Bengal, Jharkhand, etc.
The Central Government also adopted various policy measures for achieving required blending targets, details as under: -
a) Soft Loans for Ethanol – Central Government
To create new capacities, expansion of existing capacities, installation of incineration boilers, conversion to dual feed, etc. to reach blending target of 20%, Central Government has been allowing soft loans since June 2018 with interest subvention @ 6% or 50% of bank rate whichever is lower for a period of 5 years with one year moratorium period.
For stressed assets where a bank has issues in giving loans, there is a provision for a tri-partite agreement between Distillery, Oil company and the bank to motivate / push banks to give loans to such assets.
This scheme of soft loan was valid till April 2023 and currently no such scheme is in place. Government vide order dated 28.12.23 has fixed 30th June 2024 or 1 year period from loan approval whichever is later, to get loans disbursed from bank against past approvals failing which the in-principle approval for project will stand cancelled. Project should be completed within 2 years from the date of disbursement of 1st instalment of loan from bank.
During March 2025, Government has allowed scheme of soft loan with interest subvention @ 6% or 50% of bank rate whichever is lower to co-operative sector sugar mills for conversion of sugar-based feedstock ethanol plants to multi feedstock based plants including Maize and damaged food grains, so that these distilleries can easily run throughout the year. b) Basic price of Ethanol fixed by Government linked with the cost
Earlier, the Government had a system of procuring Ethanol through tender route with no basic price fixed by Government except brief period (Ethanol Year 2010-11 & 2011-12) where Government procured Ethanol at fixed interim basic price of Rs. 27.0 per Litre.
Since Dec 2014, to promote Ethanol, Government started giving fixed price of Ethanol linked with cost of Ethanol for Sugar Industry / Grain with details as under: -
Table 8: Ethanol Price
| Year (Dec- Nov) | ETHANOL PRICE - HISTORICAL DATA | |||||
| Basic Ethanol Price ( Rs. / Litre) | ||||||
| C Molasses | B Heavy Molasses | Cane juice / Syrup | Damaged Food grains | Surplus Rice \u2013 FCI | Maize | |
| 2015-16 | 42.00 | |||||
| 2016-17 | 39.00 | |||||
| 2017-18 | 40.85 | |||||
| 2018-19 | 43.46 | 52.43 | 59.19 | 47.13 | ||
| 2019-20 | 43.75 | 54.27 | 59.48 | 50.36 | ||
| 2020-21 | 45.69 | 57.61 | 62.65 | 51.55 | 56.87 | 51.55 |
| 2021-22 | 46.66 | 59.08 | 63.45 | 52.92 | 56.87 | 52.92 |
| 2022-23 | 49.41 | 60.73 | 65.61 | 64.00 | 58.50 | 66.07 |
| 2023-24 | 56.28 | 60.73 | 65.61 | 64.00 | 58.50 | 71.86 |
| 2024-25 | 57.97 | 60.73 | 65.61 | 64.00 | 58.50 | 71.86 |
| 2025-26 | 57.97 | 60.73 | 65.61 | 64.00 | 60.32 | 71.86 |
| CAGR % | 3.28% | 2.12% | 1.49% | 4.47% | 1.18% | 6.87% |
During 2023-24, Government has given sizeable incentive on Ethanol price from C molasses, Damaged food grains and Maize as these feedstocks are being promoted.
During 2024-25, Government has not increased Ethanol price from any of the feedstocks except C heavy molasses Ethanol.
The government has not given any price increase for Syrup Ethanol and B heavy molasses Ethanol since last 3 years which is a deterrent for sugar Industry.
c) Amendment in IDR Act
During May 2016, there had been an amendment in the IDR act, 1951 as per which the State Government can control, levy taxes / duties on liquor meant for human consumption only and not Ethanol, Denatured Alcohol, Industrial Alcohol for Industrial use.
It means Ethanol and denatured spirit have come out of the purview of State Govt. with no power left to regulate or impose any fees / taxes / duty on Ethanol by State Government.
Many states have relaxed state excise process like Karnataka, Gujarat, Punjab, Haryana, Maharashtra, M.P., Chhattisgarh, Bihar, etc.
Industry had to take legal recourse also to get a waiver of State Excise import fees of various states like in state of Haryana, Punjab and Delhi, export permit fees in state of U.P.
While the U.P. state has stayed Export permit fees of Rs. 1.0 per Liter as matter is sub judice in Supreme court, it is still charging license fees / denaturation fees. In fact, UP state has increased license fees from Rs. 0.15 per litre to Rs. 0.30 per litre and then to Rs. 0.50 per litre and denaturation fees from Rs. 0.15 per litre to Rs. 0.50 per litre and then to Rs. 0.60 per litre, w.e.f. 1st April 24.
However on 23 October 2024, Honourable Supreme Court upheld state governments power to regulate industrial alcohol in an 8:1 majority by holding that the term intoxicating liquor in entry 8 of list II (State list) of the Seventh Schedule of the Constitution will include industrial alcohol. After the judgement, various State Government have started imposing State Fees again. UP State has imposed export fees of Rs. 1.0 per litre with retrospective date which has been challenged by Industry in High court, Haryana state has imposed import fees of Rs. 1.20 per litre and Punjab state has imposed import fees of Rs. 1.00 per litre.
d) Exemption of central excise duty on ethanol
On April 29, 2015, the Cabinet allowed the exemption of Central excise duty on ethanol from sugar season 2015-2016, which was applicable @ 18%.
This benefit continued till 30th June 2017.
e) Reduction in GST
On July 21, 2018, Government reduced GST on Ethanol from earlier level of 18% to 5% in order to boost Ethanol sector. Other grades of Alcohol, for Industrial use / for making liquor still carrying GST @ 18%. GST on Molasses which is main raw material for production of Ethanol has also been reduced from 28% to 5%.
f) Exemption of custom duty on Industrial Alcohol
In the financial year 23-24 budget, the Government has exempted custom duty earlier applicable 5% plus cess of 10% on duty, on Denatured Ethyl Alcohol used in chemical Industry which is in support of the Ethanol Blending Program and facilitate Governments endeavor for energy transition.
g) Ban on import of Alcohol for blending purpose
Government has been allowing import of Alcohol for making chemicals / industrial usage only and not for blending.
For blending, Government is allowing only indigenous Alcohol / Alcohol made from indigenous sources only.
In fact, import of hydrous Alcohol / molasses for further processing to Anhydrous Ethanol for blending purpose is also restricted.
h) Additional Basic Excise Duty @ Rs. 2 per Liter levied on sale of unblended petrol
Since 1st November 2022, there has been applicability of additional excise duty @ Rs. 2.0 per Litre on Oil companies on sale of unblended petrol which has been introduced to promote Ethanol blending with petrol.
i) Priority of Syrup Ethanol followed by B heavy Molasses
Priority of Oil companies is to procure Ethanol available within the state and then if still left with the requirement, they procure it from other states.
For procurement within the state (to promote manufacturing of Ethanol from Syrup and B heavy), Oil companies give priority to Dedicated Ethanol plants then Syrup Ethanol which is followed by B heavy Molasses Ethanol and then C Molasses/Grain Ethanol.
j) Increase in Ethanol storage capacity
Oil companies have significantly increased Ethanol storage capacity at their depot levels which helps in fast decantation of lorries with lower detention and provides buffer for continuous blending during off-season when ethanol supplies slow down.
k) Fast payments
Now, with automation of systems / online software support at Oil companies end, since last 3-4 years, Oil companies are releasing fast payments where we get our payments on an average in 30 days time as against earlier release of payments in 35 – 40 days time.
It is expected that in times to come this payment time will further come down to 21 days on average basis.
l) Dedicated Ethanol plants
During September,21, to promote creation of new capacities in Ethanol deficit states, Oil companies came up with the offer of dedicated Ethanol plants for new potential parties interested in setting up Distilleries.
Contract with dedicated plants is such that these plants must be ready in a time bound manner as agreed with oil companies and for such successful project proponents, Oil companies have assured guaranteed purchase / lifting of their production.
m) Eased Tender conditions
Eased tender conditions like one time submission of documents, quarterly bank guarantees, multiple transportation rate slabs, transportation rates being linked to retail selling price of Diesel, long term registration of units.
From Ethanol year 2020-21, Security amount was reduced from 5% to 1% of order value and Penalty (Price reduction clause) for non-supply of Ethanol / delayed supply also reduced from 5% to 1% of basic price, to promote ethanol blending.
However, since the Ethanol year 2022-23, security deposit and penalty has increased from 1% to 3% to prevent defaults against supply orders.
n) Ethanol supply by Rail wagons / pipeline
Oil companies have started transporting Ethanol blended petrol to far flung states by rail rakes / pipeline to save logistics cost. In northern India such arrangement has been started at Mathura, Panipat and Kanpur depot.
Such a movement is of help for distillery also as it reduces their long-distance movement of ethanol and helps with cost savings.
o) Start of 20% blending
20% blending with 95% RON is a mandatory norm for petrol sold across the country w.e.f. 1st April 2026.
Government is in process of launching Flexi Fuel Vehicles (FFVs) which can take higher percentage Ethanol blend and will aid in increasing Ethanol demand.
III. POLICY REQUIREMENTS FOR INDUSTRY
a) Viable Price of Ethanol from Sugar route – Sugar syrup / B heavy
There is a need to rationalise Ethanol price from B heavy & Syrup as current Ethanol prices have not been increased since last 3 years and are not viable.
The current Sugar Syrup Ethanol basic price is Rs. 65.61 per Liter and B heavy Ethanol price is Rs. 60.73 per Litre and there are various proposals from the Industry Association to align it in line with the cost. Ethanol price from Syrup/ B heavy was last increased during the year 2022-23 when Cane FRP was 305 per qtl. which now has increased by 19.7% to level of Rs. 365 per qtl. for the Sugar Year 2026-2027. On similar lines, Cane price in UP SAP (Early variety) has increased from level of Rs. 350 per qtl. during 2022-23 to level of Rs. 400 per qtl. during 2025-26 i.e., increase by 14.3%. For the year 2025-2026, Ethanol price should be increased in line with the cane price increase and considering other inflationary factors.
b) Increase in Sugar MSP
There has been no increase in Sugar MSP since Feb 2019 (more than 7 years now) when it was fixed at Rs. 31 per Kg. After that various input costs including Cane price has increased significantly. Sugar MSP was last increased during year 2019 when Cane FRP was Rs. 275 per qtl. for 10.0% recovery which has been increased by 29.5% to level of Rs. 365 per qtl. for 10.25% recovery for the Year 2026-2027.
It is high time that Government should increase MSP in line with increasing cost in terms of cane price / other inputs to level of Min. Rs. 42 per Kg which is also being pursued by various Industry bodies.
c) Increase in demand of Ethanol
Government to allow and open alternate options where Ethanol can be consumed whether in terms of increased blending percentage, flexi-fuel vehicles which can take higher blend, blending with diesel, cooking gas stoves. Government should also open exports of Ethanol which can take care of surplus capacity and bring much required forex to country.
IV. BAJAJ HINDUSTHAN SUGARS (BHSL) POSITION
BHSL has 14 sugar plants having an aggregate crushing capacity of 136000 TCD, 6 distilleries with an aggregate capacity of 800 KL/day and about 151 MW of surplus power.
Key risks and concerns
1. Raw material
BHSL has continued its thrust on cane quality promotion and is continually investing in cane variety development.
BHSL sees cane development as a major thrust area to improve the revenue generation and is continuously striving towards it and every possible effort is made to increase availability of good quality cane for crushing.
In UP state, due to cane variety issue, there are serious implications on cane yield and sugar recovery in last 2 – 3 years. It is major thrust of the group on cane development, promoting required cane variety changes for improving overall productivity which is beneficial for farmers and will provide required feedstock to mills and on improving sugar recovery.
Another area of concern is the ability to make timely cane price payments to farmers which is affecting the availability of cane to Group.
2. Sugar price risk
While cane prices are fixed by the state government, sugar realisations are totally market driven and are dependent on demand supply dynamics. This at times led to a complete mismatch between the cane price and sugar realisations.
To mitigate the said Sugar price risk while Government has fixed Minimum Selling Price (MSP) of Sugar at the level of Rs. 31.0 per Kg below which no Sugar Mill can sell Sugar in market. But this MSP was fixed 7 years back during Feb 2019 and no increase in MSP given thereafter.
Industry Associations have represented to Government for increasing MSP to levels of Rs. 40 – 42 and linking of MSP with cane price.
Government also regulate sugar prices by giving monthly domestic release such that sugar prices on one hand remain remunerative for mills on other hand fair prices for consumers.
Government also framed policy for absorbing surplus sugar in system by giving sugar export quotas and by allowing diversion of sugar towards Ethanol.
MSP increase is urgently required to prevent sugar price fall during sugar surplus situations / during peak of crushing season.
3. Regulatory risk
The sugar industry is subject to many regulatory risks like environment, raw material pricing, government policies, etc. The biggest risk to the business is the disjointed sugarcane price fixed by the state government.
However, to ensure liquidity and financial health for Industry, both Central & State Government keeps on providing policy and subsidy support to enable Sugar Mills to pay fixed cane price as fixed by the Government.
4. De-risking strategy
As part of our business strategy, we are rapidly de-risking our business with the investment in power generation capacity. This business is non-cyclical and therefore expected to generate steady cash flows year on year.
From Sugar Year 2020-21, we have started diverting Sugar for manufacturing Ethanol in form of B heavy Molasses / Sugar syrup in varied proportions depending upon market dynamics which will reduce Sugar production and help in achieving higher production of Ethanol.
Sustained Ethanol supplies to Oil companies have provided some element of risk mitigation.
While diverting sugar to Ethanol, we keep track of market dynamics and as current Ethanol prices from B Heavy and Syrup Ethanol are not viable, we kept not diverted any sugar towards Ethanol during last 2 years.
5. Market share of BHSL in U.P. and on All India basis for Sugar basis Production – Net Sugar Table 9: Market share of BHSL in U.P. and on All India basis for Sugar basis Production Year: Oct – Sept
| Comparison of BHSL Sugar production v/s U P State and All India | |||||||||
| Particulars | Unit | 2025-26 (Estimate) | 2024-25 | 2023-24 | 2022-23 | 2021-22 | 2020-21 | 2019-20 | 2018-19 |
| BHSL Production | Million MT | 1.03 | 1.20 | 1.35 | 1.29 | 1.28 | 1.53 | 1.94 | 1.83 |
| UP Production | Million MT | 8.97 | 9.28 | 10.41 | 10.48 | 10.20 | 11.06 | 12.64 | 11.82 |
| All India Production | Million MT | 27.80 | 26.10 | 31.95 | 32.81 | 35.75 | 31.18 | 27.40 | 33.15 |
| BHSL % of UP | % | 11.48 | 12.89 | 12.93 | 12.31 | 12.55 | 13.83 | 15.35 | 15.48 |
| BHSL % of All India | % | 3.71 | 4.58 | 4.21 | 3.93 | 3.58 | 4.91 | 7.08 | 5.52 |
Note: -Above figures are of net sugar production after diversion of Sugar towards Ethanol.
6. Sugar market spread - All units of BHSL
Bajaj Group (Bajaj Hindusthan Sugar Limited) has 14 units evenly spread throughout the State of Uttar Pradesh with 5 sugar mills in Western UP, 5 in Central UP and 4 in Eastern UP.
The Zone-wise details and the crushing capacity of the mills are as below: - Table 10: Zone-wise details of crushing capacity
| ZONE | NO. OF MILLS | CRUSHING CAPACITY (TCD) |
| WEST | 5 | 48,000 |
| CENTRAL | 5 | 48,000 |
| EAST | 4 | 40,000 |
| TOTAL | 14 | 136,000 |
Markets
West U.P.: Sugar produced by our West UP mills is sold in the region of West UP and neighboring States in Northern India like Punjab, Haryana, Himachal Pradesh, Rajasthan and Delhi etc.
Central U.P.: Sugar produced in our Barkhera and Maqsoodapur mills is sold partly in the Central U.P. and in nearby states i.e. Rajasthan, M.P., Gujarat, North-East states and at times to Haryana, Orissa. The sugar produced by Gola, Palia and Khambarkhera mills is sold in Central UP, East UP, Bihar, Bengal, Jharkhand, M.P. and North-East States.
East U.P.: Sugar produced by our East UP Mills is sold in the region of Eastern UP and states like Bihar, Jharkhand, West Bengal, Assam and North-East States.
We have brought down our sugar sale by Rail rakes to North-East States of West Bengal, Assam etc. and are pushing our sale by Road route which gives us better sale realization.
Institutional buyers: Company is increasing its focus on Sale of Sugar to Institutional buyers and now have Food Safety System Certification (FSSC) 22000 license in 4 Sugar units i.e., Kinauni, Gangnauli, Barkhera and Kundarkhi unit and selling Sugar to Institutional buyers like Pepsi (Varun Beverages), Wrigley, Walmart, ITC, Dabur, Hamdard, Reliance, Udaan etc.
Competition
Other than the mills in state of UP, we face competition mainly from mills in the state of Maharashtra, Karnataka, Gujarat, A.P., Tamil Nadu. For the movement of sugar to neighboring states like Punjab, Haryana, Bihar, our sugar mills face competition from mills in these states, as well. Sugar sales market reach / penetration is purely based on the price parity and Quality with competing mills. Sugar Mills are focusing on Quality of Sugar in terms of color (ICUMSA), Grain size, luster, etc., number of mills converting from sulphitation sugar to refined sugar which is giving edge to such good quality sugar in competition.
No competition from Sugar imports
Since Sugar imports are not viable and not happening there is no competition from Imported Sugar.
V. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Internal Control System can be defined as The Organisations plan, methods and procedures adopted by the management of an entity to assist in achieving managements objective of assuring, the orderly and efficient conduct of its business, adherence to management policies, safeguarding of Companies assets, prevention and detection of fraud and errors, completeness and accuracy of accounting records, and the timely preparation of reliable financial Information. An effective Internal Control system in an Organization provides reasonable assurance to the management and stakeholders about effectiveness of its policies, processes, tasks, behaviours, etc. It helps in ensuring the quality of Internal and external reporting, compliance with applicable laws, rules and regulations and in identification and analysis of various associated risks like Process, Regulatory, Market, Financial risks etc. and helps the management in designing and implementing a suitable action plan to avoid / overcome such risks. Your Company has an Internal Control system commensurate with its size of business and nature of its operations. BHSL has in place an adequate system of Internal Controls designed to ensure that all the transactions are authorised, recorded and reported correctly. The Company also has in place a well-defined Delegation of Power (DOP) and various Standard Operating Procedures (SOPs) covering different areas and processes which further strengthens Internal Control. BHSL has a strong and Independent Internal Audit department which reports to the Audit Committee of the Board to maintain its objectivity and independence. The reports of the Internal Audit department are sent to concerned Departmental Heads responsible for taking corrective actions. Significant Audit observations and corrective action thereon are reviewed by management and subsequently placed before the Audit Committee of the Board of Directors along with the action plan recommended by respective Functional Heads. The directions of the Audit Committee are implemented by the respective Head of the Departments and action taken reports are placed before the Audit Committee members in next meeting for their perusal.
VI. HUMAN RESOURCES/INDUSTRIAL RELATIONS
During the past year, Bajaj Hindusthan Sugar Limited (BHSL) continued to reinforce a stable and positive industrial relations environment across all its units and the Head Office. The focus remained on strengthening trust, promoting open communication, and ensuring a collaborative workplace that supports organizational goals while valuing employee engagement.
Aligned with our Group Vision – Think Tomorrow, HR initiatives during the year were directed towards building a more agile, responsive, and future-oriented organization. Emphasis was placed on streamlining processes, enhancing workforce effectiveness, and fostering a culture of accountability and performance.
Going forward, we aim to further strengthen our HR framework by adopting progressive practices and continuously upgrading our policies and systems. This approach will enable us to remain adaptive to evolving business needs while creating sustained value for both the organization and its people. Our foremost objective is the effective and transparent execution of these policies across all levels of the Company. As of March 31, 2026, BHSL is proud to employ a dedicated workforce of 7,146 individuals. The following section outlines the key HR initiatives and strategic undertakings accomplished during the past financial year:
Training Programmes
During the Financial year 2025 26, the Human Resources Department implemented a comprehensiveandwell-structuredtraininganddevelopmentframeworkaimedatstrengthening organizational capability and enhancing workforce effectiveness. A detailed six-month training calendar was designed with careful planning, ensuring that sessions were conducted during lean operational periods to facilitate maximum participation without impacting core operations. The calendar, along with identified topics and nominated participants, was formally communicated to all concerned, ensuring clarity and alignment across departments.
The programmes witnessed encouraging participation, with an average attendance of 28 32 employees per session, reflecting strong engagement and learning orientation across the organization. The training interventions were delivered through a balanced mix of external experts and in-house faculty, enabling both domain specialization and internal knowledge sharing.
The sessions covered a wide spectrum of areas including technical operations, safety practices, agricultural aspects, compliance, digital systems, and behavioural development. Key training programmes included Email Writing, Fire Safety, Cheeni Ki Kahani (1 & 2), Six Thinking Hats, Interpersonal Relationship, Top Borer and its control, Ratoon management, Importance of Organic Fertilizer in Soil fertility, Electrical Safety, Cane Survey, Prevention of Sexual Harassment (POSH), Code of Conduct (COC), Design & Operation of Juice Heater, Evaporator- Fouling of heating surface and cleaning methods, Major diseases of sugarcane and its control, Major Insects & Pests of sugarcane and its control, Condensate Polishing Unit, Operations of Batch type centrifugal machine, Boiler Operations, Team Building, Awareness about DCS systems, Deaerator Operations, L&T Electrical & Automation Essentials, LOTO, Distillation, DM Plant, Molasses handling & preservation, Distillery- Boiler operations and maintenance, SAP Module, Slop fired boiler, Fermentation, Role of juice clarifier in clarification, MEE, Reverse Osmosis, 7 Habits of Highly Effective People, Work Permit System, PLC & DCS System, ESP, Effluent Management in Distilleries, ZLD in distillery, Chemical Hazards, 5 S, Sugarcane productivity, Autumn intercropping of cane, Working of PAN condensers, Mill Settings, R&M of Turbine, General Safety Awareness, Medical Emergency, Steam Economy, MS Outlook, Powerhouse operation & maintenance, Rotary vacuum filter, Computer Data Security, Building blocks of Civilization, R&M of Turbo Generator, Water Conservation, PPE, Air Pollution, Cane handling & cane preparation, Distillery process management, Welding Technology, Working of Ion exchange column, Boiler Water Chemistry, Monetary Policy, Distillery- Instruments monitoring & control, Waste to Energy, Material balance, Chemical saving & Process hazards, Mechanical circulators, Employee Social Security, MS Excel, Manure & Fertilizer dose in Sugarcane.
These initiatives reaffirm BHSLs commitment to building a skilled, adaptable, and safety-conscious workforce. By continuously investing in employee development and capability enhancement, the organization is well-positioned to meet evolving business challenges while driving sustained growth and operational excellence.
Induction Program for New Employees - The Company continues to place strong emphasis on seamless onboarding through structured induction programmes conducted regularly at both unit locations and corporate offices. These programmes are designed to familiarize new employees with the organizations values, culture, policies, and operational framework.
Delivered in an interactive format and supported by comprehensive presentations, the induction sessions provide a holistic overview of the Company, enabling new joinees to integrate effectively into their roles and contribute productively from the outset.
Activities and Events - As part of the Employee Engagement initiatives, a wide range of religious, cultural, and national integration programmes were organized across units to foster inclusivity, team spirit, and a sense of belonging among employees. These included celebrations such as birthdays, New Year get-togethers, Holi Milan, and festivals like Janmashtami, Dussehra, Diwali, Teej, and Lohri.
In addition, important national and organizational events such as Republic Day, Independence
Day, Vishwakarma Day, Environment Day, Safety Week (4th–10th March), Jamnalal Bajaj Ji Jayanti (4th November), and Labour Day (1st May) were commemorated with active participation. Various employee and family engagement activities, including drawing competitions, annual picnics, and excursion tours for children, were also conducted, further strengthening employee morale and workplace harmony.
Corporate Social Responsibility
1. Bajaj Public School (BPS) – (affiliated to CBSE): In line with the Groups Corporate Social Responsibility (CSR) philosophy, the establishment of Bajaj Public School (BPS) stands as a progressive initiative aimed at addressing the need for accessible, quality education within the local communities.
Established in 2009 as a not-for-profit institution, BPS was envisioned to provide affordable and value-based education. Over the years, it has steadily expanded its footprint across various locations, including Maqsoodapur, Gola, Palia, Barkhera, Kinauni, Gangnauli, Bilai, Utraula, and Lalitpur. At present, BPS is supporting the academic and overall development of nearly 1,400 students, serving as a vibrant platform for nurturing knowledge, values, and creativity. Beyond education, the institution has also contributed to local employment generation by engaging over 140 individuals, including spouses of employees, thereby strengthening community welfare and socio-economic upliftment.
BPS continues to uphold its commitment to serving society by fostering inclusive growth and striving for excellence in education and community development.
2. Other activities
a) Distribution of woollen clothing and blankets to underprivileged communities in the surrounding areas, especially during the winter season.
b) Organising Kanwar Seva Shivir on the occasion of Mahashivratri, extending support and facilities to devotees.
c) Provision of organic manure to farmers at subsidized rates, along with distribution of safety glasses to promote safe agricultural practices.
d) During winters, bonfires (Alao) were arranged at key public locations (road crossing) using bagasse, contributing to community welfare.
e) Health check-up camps were organized in collaboration with local hospitals at offices and unit locations, where teams of specialized doctors, including general physicians and eye specialists, conducted medical examinations. These camps benefited employees, their families, as well as local farmers and members of the nearby community.
VII. FINANCIAL ANALYSIS OF OPERATIONS OF THE COMPANY
The financial results for the year under review from April 01, 2025 to March 31, 2026
Table 11: Operational data
| Unit | Year ended March 31, 2026 | Year ended March 31, 2025 | |
| Cane Crushing | MMT | 10.097 | 11.320 |
| Sugar Recovery | % | 10.50 | 10.51 |
| Sugar Production \u2013 From Cane | MT | 10,60,320 | 11,90,281 |
| Industrial Alcohol Production | KL | 1,04,923 | 1,07,757 |
| Molasses Production \u2013 C | MT | 4,67,122 | 5,22,733 |
| Molasses Production \u2013 B-Heavy | MT | Nil | Nil |
| Power Generation | 000 Units | 5,69,542 | 6,21,994 |
During the year, the production of sugar from sugarcane was at 10,60,320 MT as compared to 11,90,281 MT during the previous year. The production of molasses-C was at 4,67,122 MT as compared to 5,22,733MT in the previous year. The industrial alcohol / ethanol production was at 1,04,923 KL as compared to 1,07,757 KL in the previous year. Power generation was at 569.54 Million Units (MUs) as compared to 621.99 MUs in the previous year. Average recovery of sugar from sugarcane 10.50% during the current year as compared to 10.51% in the previous year.
Results of operations
Table 12: Summarised financial results
Rs. Crore
| Particulars | Year ended March 31, 2026 | Year ended March 31, 2025 |
| Revenue | 5,441.05 | 5,559.39 |
| Earnings before interest depreciation and tax (EBIDTA) | 388.39 | 311.02 |
| Finance Costs (Net) PY (including non-cash 755.52 Cr) | 25.80 | 851.46 |
| Cash profits | 362.59 | 215.08 |
| Depreciation & amortisation | 210.76 | 210.70 |
| Profit/(Loss) before exceptional items and tax | 151.83 | -751.14 |
| Exceptional items | 13.86 | - |
| Profit/(Loss) before tax | 137.97 | -751.14 |
| Tax expenses | 0.01 | - |
| Profit/(Loss) after tax | 137.96 | -751.14 |
| Basic earnings per share () | 1.01 | -6.04 |
| Diluted earnings per share () | 0.94 | -6.04 |
Turnover
During the year ended March 31, 2026, the Companys total revenue was Rs. 5,441.05 crore as against 5,559.39 crore in the previous year.
Analysis of sales
During the year, the Company sold 11,70,786 MT of sugar as against 12,13,123 MT during the previous year. The Company sold 61,412 MT of molasses as against 1,28,918 MT in the previous year. However, alcohol/ethanol sales during the year was at 97,015 KL as against 1,20,410 KL during the previous year. The Company exported 147.23 MUs of power during the year as against 157.34 MUs during the previous year. Product-wise sales quantity, value and per unit realisation details are given in Table 13:
Table 13: Sales revenue
| Year ended March 31, 2026 | Year ended March 31, 2025 | ||||||
| Particulars | Unit | Qty | Value Crore | Realisation* /MT/KL/ 000 Units | Qty | Value Crore | Realisation* /MT/KL/ 000 Units |
| Sugar | MT | 11,70,786 | 4,683.77 | 40,005.34 | 12,13,123 | 4,656.12 | 38,381.27 |
| Alcohol/ Ethanol | KL | 97,015 | 548.51 | 56,538.56 | 1,20,410 | 682.42 | 56,674.56 |
| Molasses | MT | 61,412 | 10.90 | 1,774.66 | 1,28,918 | 19.60 | 1,520.00 |
| Power | 000 Units | 1,47,227 | 64.08 | 4,352.77 | 1,57,336 | 53.48 | 3,399.33 |
Industrial alcohol was sold in the local market directly to end users, mainly alcohol-based chemical plants. Ethanol was sold to oil companies, who use it for blending with petrol.
The other operating revenue includes, sale of pesticides of Rs. 29.31 crore, sale of scrap of Rs. 13.21 crore, sale of export license Rs. 7.69 crore, lease rent income of Rs. 6.25 crore and other miscellaneous operating income of Rs. 2.75 crore.
Other income
Other income for the current year was Rs. 20.88 crore (including interest income of Rs. 2.51 crore, and other miscellaneous income was at Rs. 18.37 crore) as against Rs. 17.13 crore (including interest income of Rs. 1.35 crore, and other miscellaneous income of Rs. 15.78 crore) in the previous year.
Other expenses
During the year, other expenses were Rs. 304.85 crore as against Rs. 415.87 crore in the previous year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
The EBIDTA for the current year at Rs. 388.39 crore as against Rs. 311.02 crore in the previous year.
Finance costs
Finance cost for the current year was Rs. 25.80 crore as against Rs. 851.46 crore in the previous year, due to repayments of loans.
Depreciation and amortisation
The depreciation for the current year was at Rs. 210.76 crore as against Rs. 210.70 crore in the previous year.
Tax expenses
No provision for current tax has been made in the current year; previous year deferred tax income was Nil.
Balance sheet
The summarised balance sheet as at March 31, 2026 is given in Table 15.
Table 14: Summarised balance sheet
Rs. Crore
| As at | March 31, 2026 | March 31, 2025 |
| ASSETS | ||
| Non-current assets | ||
| Fixed assets | ||
| Property, plant and equipment | 6,004.39 | 6,188.91 |
| Capital work-in-progress | 36.84 | 8.61 |
| Intangible assets | 0.09 | 0.11 |
| Non-current investments | 2,780.37 | 3,627.97 |
| Other non-current financial assets | 5.91 | 5.76 |
| Other non-current assets | 121.77 | 111.85 |
| Sub total | 8,949.37 | 9,943.21 |
| Current assets | ||
| Inventories | 2,422.42 | 2,677.22 |
| Financial assets | ||
| Trade receivables | 91.43 | 105.05 |
| Cash and cash equivalents | 84.23 | 65.34 |
| Other bank balances | 0.00 | 0.00 |
| Loans | 1,643.25 | 1,643.25 |
| Other financial assets | 67.84 | - |
| Current tax assets (net) | 10.29 | 6.60 |
| Other current assets | 652.13 | 661.79 |
| Sub total | 4,971.59 | 5,159.25 |
| Assets classified as held for sale | 61.53 | - |
| Total assets | 13,982.49 | 15,102.46 |
| EQUITY AND LIABILITIES | ||
| Shareholders\u2019 Fund | ||
| Equity | 237.21 | 124.45 |
| Instrument entirely equity in nature | 2,810.88 | - |
| Other equity | 768.07 | 165.87 |
| Sub total | 3,816.16 | 290.32 |
| As at | March 31, 2026 | March 31, 2025 |
| Non-current liabilities | ||
| Financial liabilities | ||
| Borrowings | 3,095.74 | 3,494.63 |
| Provisions | 109.30 | 112.59 |
| Deferred tax liabilities (net) | 921.63 | 994.39 |
| Sub total | 4,126.67 | 4,601.61 |
| Current liabilities | ||
| Financial liabilities | ||
| Borrowings | 369.21 | - |
| Trade payables | 3,182.24 | 3,520.01 |
| Other financial liabilities | 2,420.41 | 6,578.04 |
| Other current liabilities | 31.47 | 85.39 |
| Short-term provisions | 35.36 | 27.09 |
| Sub total | 6,038.69 | 10,210.53 |
| Liabilities directly associated with assets classified as held for sale | 0.97 | - |
| Total equity and liabilities | 13,982.49 | 15,102.46 |
Share capital
Pursuant to the approval of the shareholders of the Company at the Extraordinary General Meeting held on March 10, 2026, the consent of the members of the Company was accorded to increase the Authorised Share Capital of the Company from 500,00,00,000/- (Rupees Five Hundred Crores Only) divided into 500,00,00,000 (Five Hundred Crores) equity shares of 1/- (Rupee One Only) each to 13,000,00,00,000/-(Rupees Thirteen Thousand Crores Only) divided into 3,000,00,00,000 (Three Thousand Crores) equity shares of 1/- (Rupee One Only) each aggregating to 3,000,00,00,000/- (Rupees Three Thousand Crores Only) and 10,000,00,00,000 (Ten Thousand Crores) preference shares of 1/- (Rupee One Only) each aggregating to 10,000,00,00,000/- (Rupees Ten Thousand Crores Only) by creation of additional 2,500,00,00,000 (Two Thousand Five Hundred Crores) equity shares of 1/- (Rupee One Only) each and 10,000,00,00,000 (Ten Thousand Crores) preference shares of 1/- (Rupee One Only) each in the Authorised Share Capital of the Company.
Share Capital for the year increased from Rs. 127.74 crore to Rs. 237.39 crore on account of allotment of 109.69 crore equity shares to Lenders.
Other equity
Other equity has increased from Rs. 165.87 crore to Rs. 768.07 crore during the year.
Non-current borrowings
Long-term borrowings was at Rs. 3,095.74 crore as at March 31, 2026 as against Rs. 3,494.63 crore in the previous year ended March 31, 2025.
Current borrowings
Current borrowings was at Rs. 369.21 crore as at March 31, 2026 as against Rs. Nil in the previous year ended March 31, 2025.
Property, plant and equipment
Gross Block has decreased to Rs. 10,411.91 crore from Rs. 10,671.68 crore, on account classification of 347.27 crore of board division assets under Assets classified as held for sale and routine capitalization /decapitalization during the year. The net block stood at Rs. 6,004.48 crore as against Rs. 6,189.02 crore in the previous year.
Investments
Investment was at Rs. 2,780.37 crore as at March 31, 2026 as against Rs. 3,627.97 crore in the previous year ended March 31, 2025. The changes are mainly due to sale of investment and fair valuation of investments as per Ind AS 109.
Inventories
The inventory of sugar at the end of the current year was 4,97,286 MT as against 6,06,700 MT in the previous year. Alcohol inventory at the end of the current year was 29,229 KL as against 21,728 KL in the previous year.
The Company does not foresee any difficulty in selling the products manufactured by it.
Debtors
The debtors at the end of the current year were equivalent to 6 days of sales as compared to 7 days of sales in the previous year ended March 31, 2025. All the debtors are good and realisable.
Contingent liabilities
The status of contingent liabilities as at March 31, 2026 has been reviewed by the management. Efforts are being made for speedy settlement of pending cases.
Ratios
Comparative analysis of Important Ratios with variance is tabulated below:
| Description | Ratio (Current Year) | Ratio (Previous Year) | Variance (%) | Reasons for significant variance |
| Debtors Turnover Ratio | 54.57 | 42.69 | 27.83% | Trade Debtor Realised |
| Inventory Turnover Ratio | 2.16 | 2.10 | 2.86% | No significant change |
| Interest Coverage Ratio | 15.08 | 0.37 | 3975.68% | Decrease in interest cost |
| Current Ratio | 0.82 | 0.51 | 60.68% | Reduction in current liabilities |
| Debt Equity Ratio | 0.91 | 12.04 | 92.44% | Conversion of part debt into equity |
| Operating Profit Margin Ratio | 3.02% | 1.81% | 66.85% | Better Operational Performance |
| Net Profit Margin Ratio | 2.57% | -13.70% | 118.76% | Better operational performance & reduction in interest cost |
| Return on Net Worth | 6.72% | -102.32% | 106.57% | Better operating Performance |
Control measures for cane procurement
Besides the smooth functioning of plants, timely and regular procurement of sugarcane is the most important activity of the Company. Continuous efforts are being made to ensure systematic indenting, procurement and crushing of sugarcane. Though the current systems are adequate, as a matter of routine, these systems are periodically reviewed by the senior management team from time to time and corrective measures, if and when considered necessary, are taken to ensure the smooth flow of sugarcane.
Unit-wise operations Sugar division
Crushing details of plants during the year ended March 31, 2026, are given in Table 15:
Table 15: Cane crushing, sugar recovery and sugar production
| Plant Location | Zone | 2025-26 | 2024-25 | ||||
| Cane Crushing (MMT) | Sugar Recovery (%) | Sugar Production (Tonnes) | Cane Crushing (MMT) | Sugar Recovery (%) | Sugar Production (Tonnes) | ||
| Gola Gokarannath | Central UP | 1.239 | 10.03 | 1,24,275 | 1.380 | 10.30 | 1,42,115 |
| Palia Kalan | Central UP | 0.981 | 10.51 | 1,03,040 | 0.893 | 10.62 | 94,861 |
| Khambarkhera | Central UP | 0.985 | 10.61 | 1,04,457 | 0.942 | 10.84 | 1,02,106 |
| Barkhera | Central UP | 0.424 | 9.04 | 38,289 | 0.451 | 9.42 | 42,501 |
| Maqsoodapur | Central UP | 0.313 | 9.06 | 28,351 | 0.463 | 9.66 | 44,681 |
| Kinauni | Western UP | 1.598 | 11.29 | 1,80,476 | 1.606 | 11.22 | 1,80,260 |
| Plant Location | Zone | 2025-26 | 2024-25 | ||||
| Cane Crushing (MMT) | Sugar Recovery (%) | Sugar Production (Tonnes) | Cane Crushing (MMT) | Sugar Recovery (%) | Sugar Production (Tonnes) | ||
| Thanabhawan | Western UP | 0.774 | 10.88 | 84,236 | 1.076 | 10.77 | 1,15,845 |
| Budhana | Western UP | 1.016 | 11.02 | 1,12,031 | 1.217 | 11.10 | 1,35,085 |
| Bilai | Western UP | 0.842 | 11.22 | 94,489 | 1.050 | 10.65 | 1,11,860 |
| Gangnauli | Western UP | 0.406 | 10.12 | 41,030 | 0.699 | 10.25 | 71,670 |
| Pratappur | Eastern UP | 0.142 | 8.83 | 12,538 | 0.184 | 9.20 | 16,927 |
| Rudhauli | Eastern UP | 0.295 | 9.60 | 28,346 | 0.288 | 9.65 | 27,756 |
| Utraula | Eastern UP | 0.372 | 10.40 | 38,741 | 0.318 | 9.95 | 31,655 |
| Kundarkhi | Eastern UP | 0.710 | 9.87 | 70,021 | 0.752 | 9.71 | 72,958 |
| Total | 10.097 | 10.50 | 10,60,320 | 11.320 | 10.51 | 11,90,281 | |
Sacrifice of Sugar for B-Heavy Molasses
The entire cane of 10.097 MMT crushed on C molasses route.
Distillery division
The distillery division produced 1,04,923 KL from C-heavy molasses of industrial alcohol/ethanol during the current year against 1,07,757 KL in the previous year. Likewise, alcohol/ethanol sales aggregated during the current year at 97,015 KL (includes sales of nil KL of ethanol produced from B-heavy molasses) against 1,20,411 KL (includes sales of 11,222 KL of ethanol produced from B-heavy molasses) in the previous year. In value terms, the sale of industrial alcohol/ethanol during the year is Rs. 548.51 crore as against Rs. 682.42 crore (includes sales of Rs. 67.97 crore of ethanol produced from B-heavy molasses) in the previous year.
Power division
The sale of power was recorded at Rs. 77.90 crore (Includes Rs. 13.82 crore arrear of previous year) in the current year as against Rs. 53.48 crore in the previous year. The Company continued optimal use of co-gen capacities with better planning.
Board division
Plants of board division were not operational since 2012 and assets classified as held for sale.
Accounting policies
These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for: Certain financial assets and liabilities measured at fair value, Defined benefit plans - plan assets measured at fair value.
With effect from April 01, 2017, the financial statements of the Company have been prepared to comply with the Indian Accounting Standards (Ind AS) notified under Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.
Cautionary/futuristic statements
Statements in the management discussion and analysis report describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable laws and regulations and futuristic in nature. Actual performance may differ materially from those either expressed or implied. Such statements represent the intentions of the management, and the efforts put into realising certain goals. Success in realising these depends on various factors both internal and external. Investors, therefore, are requested to make their own independent judgements before taking any investment decisions.
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+91 9892691696
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