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Informist, Friday, Jan. 31, 2025

 

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--ISMA sees 2024-25 closing sugar stock at 6.25 mln tn 
--ISMA sees 2024-25 sugar diversion for ethanol mfg at 3.75 mln tn 
--ISMA: 500 mills crushing cane as of Jan 31 vs 520 year ago 
--ISMA: Maharashtra 2024-25 sugar output seen 8.8 mln tn
--ISMA: Gujarat 2024-25 sugar output seen 960,000 tn
--ISMA: Tamil Nadu 2024-25 sugar output seen 868,000 tn
--ISMA: Karnataka 2024-25 sugar output seen 4.0 mln tn 
--ISMA: Uttar Pradesh 2024-25 sugar output seen 9.5 mln tn
 

 

MUMBAI – The Indian Sugar Mills & Bio-Energy Manufacturers Association sees sugar production in the sugar year 2024-25 (Oct-Sep) at 27.3 million tonnes, down 14.4% on year from 31.9 million tonnes in 2023-24, according to its second advance estimate.

 

The association has cut its estimate for gross sugar production in 2024-25 to 31.0 million tonnes. In the first advance estimate issued in November, the association had pegged gross sugar output in the current sugar season at 33.3 million tonnes. Gross sugar output is estimated before taking into account sucrose diversion for making ethanol.

 

Meanwhile, around 16.5 million tonnes of sugar were produced till Jan. 31, against around 18.7 million tonnes produced on the corresponding date last year. Currently, 500 mills are in operation across the country, against 520 mills a year ago, the association said.

 

For the current sugar year, the association has pegged output in Uttar Pradesh at 9.5 million tonnes. Production in Maharashtra has been pegged at 8.8 million tonnes. In Karnataka, output of the sweetener is pegged at 4.0 million tonnes. In Gujarat, the association has pegged sugar production at 960,000 tonnes.

 

Sugarcane yield and sugar recovery in Uttar Pradesh are lower this year, primarily because of widespread red rot infestation and varietal replacement, resulting in lower estimated sugar production, the association said. The other two major sugar-producing states of Maharashtra and Karnataka are also getting lower cane yields per unit area, it said. The main reason is the early onset of flowering in several cane-growing regions due to wet field conditions, an outcome of the higher rainfall received during the southwest monsoon and post-monsoon seasons in 2024, it said.

 

It is estimated that about 3.75 million tonnes of sugar will be diverted towards the production of ethanol during 2024-25, as compared to about 4.00 million tonnes that were estimated to be diverted in the first advance estimate by the association. Currently, ethanol made from sugarcane juice is priced at INR 65.61 per litre and ethanol from B-heavy molasses is priced at INR 60.73 per litre, unchanged from 2022-23. Of the sugarcane-based feedstock basket, the government in 2023-24 only raised the price of ethanol from C-heavy molasses by INR 6.87 to INR 56.28 per litre.

 

Sugar mills have been waiting for the government to announce revised ethanol prices for 2024-25. The procurement price of ethanol is linked to the fair and remunerative price of sugarcane, which the government has increased by INR 25 to INR 340 per 100 kg. For sugarcane purchases, mills have to pay farmers prices decided by the government.

 

In its second advance estimate, the Indian Sugar Mills & Bio-Energy Manufacturers Association sees the 2024-25 closing sugar stock at 6.25 million tonnes. "As per government data, domestic sugar consumption in the first 3 months of the 2024-25 sugar season (Oct-Dec) is around 65 lakh tons (6.5 million tonnes), which is almost 5 lakh tons (500,000 tonnes) lower than the cumulative sales quota of 69.5 lakh tons (6.95 million tonnes) for the corresponding period," according to the release.

 

Supported by a favourable southwest monsoon in 2024, planting for the 2025-26 season has reportedly improved in Maharashtra and Karnataka over the current sugar year. As a result, the 2025-26 crushing season is set to begin earlier in October, according to the association.  End

 

Reported by Taniva Singha Roy

Edited by Rajeev Pai

 

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