New Delhi, June 27 -- India's gross sugar production is expected to rise in the sugar season (SS) 2026, helped by above-average monsoon, boosting cane acreage and yields in key sugar-producing states such as Maharashtra and Karnataka, according to a report by Crisil.

The Crisil report estimates that sugar production is expected to rise by about 15 -35 per cent to 35 million tonnes.

This surge is expected to boost sugar mills and give some relief from the trifecta of challenges, such as high cane costs, subdued ethanol prices and muted exports that compressed their operating profitability by about 200 basis points (bps) to 8.7-9 per cent in FY2025.

With improved supplies and potentially higher diversion of sugar for ethanol blending wit...