India's sugar production has increased by 9%, reaching 272.31 lakh tons as of March 31, 2026, compared to 248.78 lakh tons during the same period last year, according to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA). Despite the rise in production, the number of operational sugar mills has declined sharply from 95 to 56, raising concerns about the industry's viability. Uttar Pradesh reported a stable output of 87.5 lakh tons, while Maharashtra's production surged to 99.3 lakh tons, up from 80.26 lakh tons last year. Karnataka also saw an increase, producing 47.90 lakh tons, compared to 39.94 lakh tons in the previous season. The operational mills in these states have decreased from 7 to 4. ISMA has urged for an early revision of the Minimum Selling Price (MSP) due to rising production costs and inadequate revenue, which have led to increased cane payment arrears. Additionally, the association highlighted the need for timely policy interventions to stabilize the sugar market and enhance energy security amid disruptions in LPG supply affecting demand.