More Stories

Informist, Monday, Jun. 2, 2025

 

Please click here to read all liners published on this story

--Sugar federation: Urge govt to hike prices of ethanol from all feedstocks 
--Sugar federation: Sugar cos supplied 73% of total ethanol supply in 2022-23 
--Sugar federation: Sugar cos supplied 38% of total ethanol supply in 2023-24 
--Sugar federation: Of 9 bln ltr ethanol aim 2024-25, sugar cos supplied 28% 
--Sugar federation: Sugar diversion for ethanol mfg has been declining 
--Sugar federation: See better sugar output in 2025-26 season on good monsoon 
--Sugar federation: See better 2025-26 season with gross output at 35 mln tn 
--Sugar federation: Sept closing stock enough for 2 months' sugar needs 
--Sugar federation: See 2024-25 sugar closing stock at 4.86 mln tn 

 

MUMBAI - The National Federation of Cooperative Sugar Factories has pegged the closing stock for the 2024–25 sugar season (Oct–Sept) at 4.86 million tonnes. This is considered sufficient to meet domestic consumption during two crucial months of October and November, ensuring price stability and uninterrupted supply, the federation said.

 

In 2024-25 sugar year, diversion of sugar for ethanol production is expected to fall to 2.5 billion litres, just 28% of the total blending target of 9.0 billion litres, according to the federation. This marks a sharp decline from the 4.3 million tonnes of sugar diverted in 2022–23, which accounted for 73% of the total ethanol blended with fuel across the country.

 

The fall in sugar diversion for ethanol is primarily attributed to stagnant ethanol procurement prices, which have not been increased in line with the rising fair and remunerative price of sugarcane. As a result, ethanol production has become less profitable for sugar mills, which are instead opting to sell the sweetener directly in the domestic market. In 2023–24, ethanol output from sugar-based feedstocks fell to 2.7 billion litres, contributing only 38% to the national ethanol blending programme.  

 

Although there is a potential to divert up to 4.0 million tonnes of sugar to ethanol production this year, only around 3.2 million tonnes are expected to be diverted, the trade body said. As a result, India's ethanol production capacity of 9.52 billion litres per year--including 1.30 billion litres from multi-feed

distilleries--is being underutilised, the sugar body said.

 

Diverting sugar to ethanol does not reduce the actual production of sugar, instead, it helps to manage surplus sugar stocks, stabilise market prices, improve financial health of sugar mills, and ensure timely payments to farmers, it said.

 

Meanwhile, in view of the growing challenges faced by the ethanol sector, a meeting was held at the Prime Minister's Office. The industry delegation was led by Ravi Gupta, chairman of the Sugar Bioenergy Group of the Indian Federation of Green Energy and expert member on the board of the National Federation of Cooperative Sugar Factories. The delegation called for an upward revision of prices for ethanol procurement to reflect rising costs of feedstocks such as sugarcane, maize, and rice.

 

It also urged the Centre to extend ethanol blending targets beyond 20%, with a clear, phased timeline up to the year 2035.

 

Additionally, the industry delegation suggested evaluating the possibility of blending ethanol with diesel as a future strategy to expand ethanol use across fuel types. The federation has projected a better 2025–26 sugar season, with gross output estimated at 35 million tonnes. This anticipated rebound is credited to favourable monsoon conditions and increased sugarcane cultivation in key producing states such as Maharashtra and Karnataka.

 

Sugar prices have remained stable, with ex-mill prices ranging from INR 3,880 to INR 3,920 per 100 kilogram. The federation attributed this stability to lower net production, strong market demand, and effective government interventions--including controlled monthly domestic quota releases and limited export permissions--that have helped balance supply in the domestic market.  End

 

Reported by Taniva Singha Roy

Edited by Subhojit Sarkar

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.