India May Need to Import Sugar for Second Consecutive Year as Water Shortage Hits Cane
Water shortages in Maharashtra and Karnataka are threatening sugarcane recovery rates ahead of the October crushing season, according to The Economic Times, which cited industry officials. India, the world's second-largest sugar producer, may need to import sugar for a second consecutive year.
Water Shortages Threaten India's Cane Crop
India may need to import sugar for a second consecutive year, as severe water shortages in the country's leading sugarcane-growing states threaten to reduce sugar recovery rates and overall output, The Economic Times reported, citing industry officials. India, the world's second-largest sugar producer, ran a structural surplus for roughly a decade before falling production forced it to import sugar during the 2025-26 season. That shortfall pushed domestic sugar prices to record levels.
Maharashtra and Karnataka Prioritize Drinking Water
Prolonged rainfall deficits in Maharashtra and Karnataka, India's two largest sugarcane-producing states, have raised concerns over cane recovery in the upcoming season. Industry officials say the availability of water for irrigation is becoming a major challenge, as state governments prioritize reservoir water for drinking supplies over farming needs. Karnataka, the country's third-largest sugar-producing state, has already reserved its reservoir water for drinking purposes. Maharashtra, the country's largest producer, is considering a similar step given its own water shortages.
Impact on the October Crushing Season
Industry officials warn that reduced irrigation water could affect the sugar content of cane delivered to mills once crushing begins in October. Lower sugar content in the cane would reduce recovery rates and cut total sugar production even if planted area remains stable.
Government Has Already Moved to Stabilize Prices
The situation comes after the government already took several steps to stabilize domestic sugar prices, including imposing stock limits on sugar, permitting sugar imports, and allowing an early start to the crushing season. Industry officials said that if cane quality and sugar recovery decline further, domestic production could fall short of consumption needs, requiring India to import sugar for a second consecutive year.
