Informist, Friday, Nov. 8, 2024

NEW DELHI – The National Federation of Cooperative Sugar Factories has projected India's gross sugar production in 2024-25 (Oct-Sep) at 32.5 million tonnes. Gross sugar output is estimated before sucrose diversion for making ethanol. Last year, the country's gross sugar output was around 34 million tonnes.

The federation has not given an estimate for net sugar production in 2024-25. However, with 4 million tonnes diverted for ethanol production from the gross sugar output of 32.5 million, the net sugar output in 2024-25 is likely to be 28.5 million tonnes. According to the Indian Sugar and Bio-energy Manufacturers Association, the country's gross sugar output is likely to be 33.3 million tonnes in 2024-25.

In 2023-24, the government allowed a little over 2 million tonnes of sugar to be diverted for ethanol production due to concerns about lower production of the sweetener. India consumes around 29 million tonnes sugar. However, sugar stocks have piled up in the country because of restrictions on export and ethanol production.

According to the federation, as of Sep. 30, mills were left with nearly 8.0 million tonnes of unsold sugar. This is lower than ISMA's estimate of 8.5 million tonnes as closing stock in 2023-24, but close to the government's estimate of 7.8 million tonnes.

After keeping aside 5.5 million tonnes of sugar as buffer stock, around 1.15 million tonnes will remain in the godowns of 535 factories across the country, the federation said. "Due to increasing sugar stocks and ever rising cost of production, the financial stress on the industry has increased and could go beyond repair," the release said.

Citing the rise in fair and remunerative prices of sugarcane, the sugar industry has been urging the government to increase the minimum selling price of sugar and revise the rates of ethanol made from sugarcane by-products. In February, before the General Election, the Centre announced a hike of INR 25 in the fair and remunerative price of sugarcane to 340 rupees per 100 kg for the 2024-25 (Oct-Sep) sugar season.

The sugar industry has to spend INR 1.5 trillion to continue its operations, with 75% of it on timely cane payments and the remaining 25% on operational expenses, the federation said. End

Reported by Afra Abubacker

Edited by Ashish Shirke

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