PUNE: India may need to import sugar for a second consecutive year as severe water stress in key cane-growing states threatens to cut sugar recovery and deepen a production shortfall, industry executives said.
The world’s second-largest sugar producer had remained structurally surplus for nearly a decade but was forced to import sugar in the 2025-26 season after lower output pushed domestic prices to record highs. Prolonged rainfall shortages in Maharashtra and Karnataka, coupled with the state prioritising reservoir water for drinking over irrigation, are expected to reduce sugar content in cane due for crushing from October, executives said. The government has since stabilised prices through stock limits, imports and allowing early crushing.
Karnataka, the third largest sugar producer, has reserved reservoir water for drinking while Maharashtra, the top sugar producer, is considering a similar move.