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Informist, Wednesday, Nov. 6, 2024

 

--ISMA retains gross sugar output estimate for 2024-25 at 33.3 mln tn

--CONTEXT: ISMA releases 2024-25 first advance estimate for sugar output

--ISMA pegs 2024-25 sugar diversion for ethanol 4.0 mln tn vs 2.1 mln yr ago

--ISMA sees 2024-25 sugar closing stock at 8.8 mln tn 

 

NEW DELHI – The Indian Sugar Mills & Bio-Energy Manufacturers Association has retained its estimate for gross sugar production in 2024-25 (Oct-Sep)at 33.3 million tonnes, 2.3% lower than 34.1 million tonnes last year, according to ISMA's first advance estimates for sugar output. In July, the association had pegged gross sugar output in the ongoing sugar season at 33.3 million tonnes. Gross sugar output is estimated before sucrose diversion for ethanol making.

 

"It was noted that crop conditions look good in the major sugarcane producing states and field reports also align with the findings of the satellite mapping report," ISMA said. The government has pegged sugarcane output this year at 439.9 million tonnes, 2.9?low the final estimate of 453.2 million tonnes for last year.

 

With sugarcane output seen lower in 2024-25, the government might not be keen to open sugar exports in the ongoing sugar year. Since 2022, India has banned sugar exports to ensure domestic availability of the sweetener. India is the second-largest producer of sugar after Brazil.

 

The association has estimated sugar diversion for ethanol at 4.0 million tonnes in the ongoing ethanol supply year that started in November. In 2023-24, the government had restricted ethanol production from sugarcane by-products at a little over 2 million tonnes amid concerns about lower production of the sweetener.

 

ISMA has not provided an estimate for net sugar production in 2024-25. However, with 4 million tonnes diverted for ethanol production from the gross sugar output of 33.3 million, the net sugar output in 2024-25 is likely to be 29.3 million tonnes. In 2023-24, the net sugar output was nearly 32 million tonnes. 

 

ISMA says a lot of sugar has piled up in the country amid restrictions on export and ethanol production. According to the government, the 2024-25 opening stock as of October is 7.8 million tonnes of sugar. ISMA has pegged a higher opening stock of 8.5 million tonnes. 

 

According to ISMA, the total sugar availability in 2024-25 (Oct-Sep) is 41.8 million tonnes, as the association has pegged opening stock at 8.5 million tonnes and gross sugar output at 33.3 million tonnes. With annual domestic consumption demand of 29.0 million tonnes, the association has pegged closing stocks in September 2025 at 8.8 million tonnes. 

 

In 2024-25, ISMA sees comfortable availability of sugar not only for domestic consumption and the ethanol blending programme, but also for sugar exports.  End

 

Reported by Afra Abubacker

Edited by Avishek Dutta

 

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