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India's Sugar Industry Expands with More Crops and Ethanol

India's sugarcane harvest grew to about 500 million tonnes, a 43.5% increase over the past decade, making the country the world's second‑largest producer.

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Key Points

7 points
1

Sugarcane production reached 500 million tonnes in 2025‑26, up 43.5% from 2015‑16

2

Cultivated area grew from 49.27 lakh hectares to 58.87 lakh hectares in the same period

3

Sugar exports increased to eight hundred thousand tonnes, up from forty‑seven thousand tonnes in 2016‑17

4

Ethanol now accounts for about 9% of sugarcane use, down from 12%, with most ethanol made from grains like maize

5

Fair and Remunerative Price for sugarcane set at 365 Indian rupees per quintal for the 2026‑27 season

6

97% of sugarcane dues for the 2025‑26 season were paid on time, showing stronger mill finances

7

Government actions include a 400‑tonne stock limit for dealers, a 15‑day stock rule for bulk buyers, and duty‑free import of ten lakh tonnes of raw sugar

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Summary

The area under sugarcane cultivation also expanded, with key states Uttar Pradesh and Maharashtra leading the growth.

Export of sugar rose sharply, reaching eight hundred thousand tonnes in 2025‑26, mainly to Sri Lanka, West Asia and East Africa.

The government introduced an ethanol‑blending programme, using sugarcane and grain to create a renewable fuel, which helps farmers earn extra income and reduces reliance on fossil fuels.

Despite a short‑term rise in retail sugar prices, the overall price increase has been modest, and 97% of farmer payments for the 2025‑26 season were completed by August 2026.

Measures such as stock limits for dealers, verification of sugar stocks, and duty‑free imports are being used to prevent hoarding and keep sugar available for consumers.

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New Words to Learn

7 words
lakh
a unit equal to one hundred thousand (100,000)
hectare
a unit of area about the size of a rugby field (10,000 square meters)
ethanol
a clean fuel made from plant material such as sugarcane or grain
greenhouse gas
gases that trap heat in the atmosphere and can cause warming of the planet
hoarding
keeping large amounts of a product to create artificial scarcity and raise prices
duty‑free import
bringing goods into a country without paying the usual taxes
crushing season
the period when sugarcane is processed to extract sugar
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