“Despite technological progress, performance across mills remains uneven, pointing to the need for standardization and better process control. So, these are low hanging fruits, which in case we are able to give a nudge to the industries in which we are lagging behind, we can pull up the entire sector. And there are also gaps in real time data utilization. When large amounts of data are generated, they are often underutilized. The absence of integrated digital systems limit predictive capabilities, delay decision making and impact overall operational efficiency,” added Chopra on the sidelines of the ISMA SugarNxt Conference.
India’s sugar output is up about 9% in the 2025–26 season at 272.31 lakh tonnes as of March 31, compared to 248.78 lakh tonnes a year earlier, according to ISMA. Despite higher production, operational mills have dropped to 56 from 95 last year. In Uttar Pradesh, output is steady at 87.5 lakh tonnes, but running mills have declined to 28 from 48. Maharashtra and Karnataka have recorded strong gains. Maharashtra’s output has risen to 99.3 lakh tonnes from 80.26 lakh tonnes, while Karnataka’s stands at 47.90 lakh tonnes versus 39.94 lakh tonnes last year. However, only about four mills are currently operational across the two states, down from seven a year ago.
Chopra flagged process inefficiencies across the sugar value chain, from cane quality assessment and harvesting to milling, clarification, crystallisation, and downstream fermentation and distillation, stating that small losses at each stage cumulatively lead to significant output gaps. Optimising these processes alone could reduce sugar losses by 0.2-0.3 percentage points, improving overall industry performance, he said.
He also highlighted supply chain and cane management issues, including wide variability in yields (70-85 tonnes per hectare) and quality. Crushing within 24 hours of harvest is critical to minimise deterioration, while better field-level planning using remote sensing and improved mill operations can enhance recovery and yields, added Chopra.
Earlier, he said that the 20% ethanol blending programme, implemented at scale, has led to crude oil savings of nearly Rs 1.65 lakh crore, reflecting both policy support and strong industry response. “Going forward, the focus must be on closing efficiency gaps at the plant level, improving real-time data utilisation, and accelerating process optimisation,” added Chopra.
For context, India’s ethanol capacity has reached about 1,990 crore litres as of November 2025, driven by expansion in molasses- and grain-based distilleries, supporting the E20 blending target for full rollout in ESY 2025–26.Niraj Shirgaokar, President, ISMA, said, “The Indian sugar industry is undergoing a structural shift from a cyclical commodity sector to a more stable and diversified bio-energy ecosystem. As expectations from the sector grow, the focus must now be on improving cost competitiveness and unlocking greater value from every part of the production cycle. Technology and byproduct valorisation will be central to this transition, and platforms like SugarNXT are critical in accelerating industry-wide adoption of these next-generation practices.”
Deepak Ballani, Director General, ISMA, said, “The next phase of growth for the sugar industry will be driven by execution, how effectively mills can optimize operations, leverage data for real-time decision-making, and reduce energy and water intensity. SugarNXT has been designed to focus on this ‘how’, bringing practical, implementable solutions that can improve recovery, minimise downtime, and deliver measurable gains in efficiency at the plant level.”
On the sidelines of the event, Ballani said LPG disruptions, impacting small eateries and dhabas, have hit sugar offtake, leaving nearly 2 LMT unsold from the monthly quota, a trend that may extend into April if tensions persist. India’s gross sugar output is estimated at 320 LMT, with about 34 LMT likely to be diverted to ethanol. Exports are expected to stay subdued at under 800,000 tonnes this season.
Echoing industry concerns, stakeholders said Maharashtra sugar mills are under financial stress due to high cane costs and lower sugar prices. They urged the government to raise the sugar MSP to improve cash flows and support mill viability.