India's sugar output rose 28% by Dec. 15, 2025, but cooperatives face crisis due to low prices and unpaid farmer dues.

India's sugar production hit 7.79 million tonnes by December 15, 2025, a 28.3% rise driven by increased cane crushing and higher recovery rates, especially in Maharashtra and Uttar Pradesh. Despite strong output, cooperative mills face financial strain as ex-mill prices dropped to around Rs 3,770 per quintal, with unpaid cane farmer dues exceeding Rs 1.3 lakh crore. The National Federation of Cooperative Sugar Factories urged the government to raise the minimum selling price to Rs 41 per kg, boost ethanol procurement, allow more sugar for ethanol, and expand exports, warning that current measures are insufficient to address a looming liquidity crisis.