Non-centrifugal sugar (Panela) is a natural sweet enhancer obtained from sugarcane. In this process, waste from the agricultural industry is disposed of incorrectly, fossil fuels are used, and the furnaces' efficiency is low, leading to environmental problems. Therefore, this study aims to assess the environmental impacts of Panela production to identify possible hotspots and propose alternatives to reduce the environmental impacts such as acidification, global warming, freshwater eutrophication, and particulate matter emissions. Aspen Plus, interviews, and databases were used to determine life cycle inventory that then was used to calculate environmental impacts. Central results showed that producing 1 kg of Panela results in a carbon footprint of 4.09 kg CO2-eq and removes 6.02 kg CO2 during the growth phase. Moreover, the acidification potential, freshwater eutrophication, and particulate matter emissions were 0.21 molc H+-eq, 0.0077 kg P-eq, and 0.0042 kg PM2.5-eq, respectively. These impacts are mainly due to the harvesting phase, as agro-industrial wastes such as sugarcane press mud, and leaves are disposed of incorrectly. To solve this issue, suitable methods of fertilization are proposed, achieving a reduction in acidification potential and particulate matter emissions by 80%. In addition, greenhouse gas emissions are reduced by 35% if bagasse is not burned. Hence, the combination of both alternatives will improve the sustainable production of Panela. The significance of this study is to show new alternatives to reduce the environmental impact of Panela. Besides, these strategies such as improving agricultural practices and designing new furnaces are aligned with national policies.