USDA foreign arm pegs India 2025-26 sugar output at 35.3 mln tn, up 26%
This story was originally published at 18:57 IST on 7 May 2025
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NEW DELHI – The US Department of Agriculture's Foreign Agricultural Service has estimated India's sugar production in 2025-26 (Oct-Sep) at 35.25 million tonnes, up 26% from the revised estimate of 28.00 million tonnes for the current season ending September. The anticipated rise is due to higher sugarcane cultivation amid a favourable southwest monsoon received from June to September 2024, which replenished groundwater reservoirs in the key cane growing areas, it added.
The body also expects the sugar recovery rate to improve with enhanced groundwater availability. "As such, the percentage of sugar recovered from the sugarcane is expected to grow by 19% from the current season," it said.
India's sugar consumption is pegged to rise 5% on year to 31 million tonnes. The per capita sugar consumption is expected to rise to 21,000 tonnes in 2025-26. "Industry sources indicate that per capita sugar consumption is likely to keep rising, aligning with the global average of 0.023 MMT (23,000 tonnes)," the report said.
On prices, the body said sugar rates are currently elevated and are expected to remain high throughout this year. "Factors such as decreased sugar output, early mill closures, and increased buying activity will sustain inflated wholesale and retail prices while meeting domestic demand and export quotas for the current year."
The current sugar year is estimated to close with ending stocks of 5.8 million tonnes, down from the initial estimate of over 10 million tonnes, the report said. This change is attributed to a production year that fell short of expectations, combined with 3.7 million tonnes of sugar diversion for ethanol production and an export allowance of 1 million tonnes, it added. End
Reported by Afra Abubacker
Edited by Avishek Dutta
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