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Informist, Wednesday, Mar. 12, 2025

NEW DELHI – The Indian Sugar Mills & Bio-Energy Manufacturers Association has estimated the country's sugar production to fall 17.2% on year to 26.40 million tonnes in the sugar season ending Sept. 30. Last year, the country's sugar output was 31.90 million tonnes. 

In January, the association had estimated sugar production in 2024-25 (Oct-Sep) at 27.30 million tonnes. However, it has now lowered its view by an additional 900,000 tonnes amid reduced output estimates for major producing states Maharashtra and Uttar Pradesh. 

Maharashtra is expected to produce 8.10 million tonnes of sugar, against January's estimate of 8.84 million tonnes. Output in Uttar Pradesh is seen at 9.25 million tonnes, down from 9.50 million tonnes estimated earlier. Meanwhile, Karnataka is likely to produce 4.15 million tonnes, up from the earlier estimate of 3.98 million tonnes.

The association has pegged sucrose diversion for ethanol production at 3.50 million tonnes, down from 3.75 million tonnes estimated earlier.

With an opening stock of 8.0 million tonnes and estimated sugar output of 26.40 million tonnes, the total sugar availability in 2024-25 is seen at 34.40 million tonnes. India needs about 28.00 million tonnes for domestic consumption, according to the association.

With 1.00 million tonnes shipped out for exports, the 2024-25 sugar season is likely to close with an ending stock of 5.40 million tonnes as of Sept. 30, the association said in the release. 

For the upcoming sugar season 2025-26, the sugar association sees crushing operations beginning on time in October. "Supported by a favourable southwest monsoon in 2024 and good water availability in reservoirs, planting for 2025-26 season has reportedly improved over this year in Maharashtra and Karnataka," it added.

Additionally, it expects better yields and recovery in 2025-26 amid varietal replacement activity in Uttar Pradesh and other north Indian states. 

PRODUCTION SO FAR

As of Monday, mills across India had produced 23.30 million tonnes of sugar. About 228 mills are running across the country, according to the association's release. Though mills in Maharashtra closed operations earlier this year amid lower cane availability, Uttar Pradesh crushing season is likely to be longer.

"In Uttar Pradesh, improved plant cane recovery and yield may extend the crushing season until April. However, some mills in East and Central U.P. are likely to close by the end of March 2025," the sugar body said in its release.

Meanwhile, some mills in Karnataka are expected to resume operations during a special season starting in June or July, it added.

As of Monday, sugar production in Maharashtra was at 7.80 million tonnes, while in Uttar Pradesh, it was at 7.90 million tonnes. Karnataka produced 3.90 million tonnes of sugar, and other states collectively produced 3.73 million tonnes, according to the association.

Additionally, payments for sugarcane have been accelerated, it said, with 80% of cane supplied in 2024-25 already paid for. This marks an increase from 69% paid for as of mid-January, it added.  End

Reported by Afra Abubacker

Edited by Rajeev Pai

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