LUCKNOW A sugar shortage, if at all, may be a reality in some other parts of the country, but Uttar Pradesh, India’s largest sugarcane producer and second-largest sugar producer after Maharashtra, has a different story to tell.
Amid the shortage talks, the state’s immediate worry, as per official claims, is to exhaust its existing sugar stocks of over 28 lakh tonnes that can meet the demand for the next six-seven months even as new stocks will start coming from October.
So, what exactly triggered the price rise despite the surplus remains debatable. The state government and sugar mills insist there is no physical shortage in UP with the latter attributing the price spike largely to speculation and possible hoarding. The Centre’s recent decision to allow sugar imports, however, has fuelled speculation that supply tightness may exist elsewhere in the country.
“Contrary to the shortage, we have surplus stocks that can easily meet the state’s consumption demand for January-February next year,” said Veena Kumari Meena, additional chief secretary, sugar industries, cane development and excise. She said UP had even offered the Centre to take sugar stocks from the state to meet demand elsewhere, if required.
“Our existing stock alone could meet the entire country’s sugar requirement for two months. Our worry is to exhaust existing stocks before the new arrives,” said Meena, pointing out that mills would start producing fresh sugar from October.
{{/usCountry}}“Our existing stock alone could meet the entire country’s sugar requirement for two months. Our worry is to exhaust existing stocks before the new arrives,” said Meena, pointing out that mills would start producing fresh sugar from October.
{{/usCountry}}According to UP Sugar Mills Association general secretary Deepak Guptara, the state consumes around 4 lakh tonnes of sugar a month, while stocks are sufficient to meet demand for five-six months. The association rejected reports of a physical shortage, saying its member mills have comfortable carry-over and running stocks.
Meena, who also holds the additional charge of cane commissioner, said the recent price rise appeared to have followed a possible disruption in the supply translation line from Maharashtra to wholesalers. This, she said, may have triggered rumours of a sugar shortage across the country, subsequently influencing prices.
While there may be no immediate shortage, sugar production in UP has undoubtedly declined. Production fell to 89.52 lakh tonnes in 2025-26 from 92.45 lakh tonnes in 2024-25 and 104.13 lakh tonnes in 2023-24. Cane crushing too dropped from 981.68 lakh tonnes in 2023-24 to 878.12 lakh tonnes in 2025-26.
The decline has coincided with a sharp rise in ethanol production – from 152.4 crore litres in 2023-24 to 225 crore litres in 2025-26. However, Meena said ethanol had not impacted sugar production, with the share of cane diverted for ethanol being only 8-9%. Lower average cane yield and cane diseases were among the factors for lower sugar production, she said and Guptara endorsed the same.
Shailesh Gupta of Ganpati Sugar Trading Company, Lucknow, however, said that there may not be shortage in UP but it must be existing elsewhere. “If there is no shortage, why has the Centre recently allowed sugar imports for the first time in a decade,” he questioned. He said prices had now started declining, though they still remained quite higher than earlier levels.