Economics of sugar production was measured by considering the three cooperative sugar factories using different parameters like costs and returns from sugar production, sugar sales and revenue, by-products sales and revenue in Bidar district of North-Eastern Karnataka (NEK) region. Thus, the calculated sugar sales, revenue accrued and price of sugar revealed that, the average total sugar sales under both open and levy quota was 3722 metric tonnes, while average revenue of sugar sales under levy quota was ` 163 lakh, but the average price of sugar was ` 2275 per quintal over the study period. In order to reduce the losses in the factory, an effort towards the integration and coordination of various sections of the factory must be converged so that the factories can run on a profit basis.