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Informist, Tuesday, Sept. 30, 2025

NEW DELHI – India is estimated to close the sugar season 2024-25 (Oct-Sept) with a stock of 4.74 million tonnes as of Tuesday, according to a notification by the Department of Food and Public Distribution Tuesday. This is largely in line with the government's projection of a closing stock of 5.00 million tonnes but sharply lower than the closing stock of 8.00 million tonnes a year ago.

Not much sugar is being carried forward from the 2024-25 season as mills produced less sugar than in 2023-24. India's sugar production in 2024-25 is estimated at 26.40 million tonnes, down 17.2% from 31.90 million tonnes a year ago, according to the Indian Sugar Mills & Bio-Energy Manufacturers Association. 

Sugar stocks had also piled up in 2023-24 because the government had restricted exports and diversion of the commodity for ethanol production amid concerns over lower production. This was based on early projections of a poor sugarcane crop. The crop later turned out to be good.

Though the current closing stock of 4.74 million tonnes is lower than last year, it is sufficient for two months' consumption needs until sugarcane crushing operations gather pace in November. It is also largely in line with industry expectations, with the sugar mills association having pegged the closing stock at 5.20 million tonnes and the National Federation of Cooperative Sugar Factories at 4.86 million tonnes.

The monthly sugar sales quotas for 2024-25 added up to 27.55 million tonnes, 5.5% lower than 29.15 million tonnes in 2023-24. Monthly sugar sales quotas are taken as an indicator of sugar consumption. According to experts, dispatches fell in 2024-25 because of a higher base.

"Last year, sugar dispatches were higher... which people believe is demand," G.K. Sood, chairman of MEIR Commodities India Ltd., had told Informist earlier. "But it included around 700,000 tonnes of sugar smuggled to Nepal and Bangladesh, some 500,000 tonnes held by traders on expectations of a hike in the minimum selling price, and another 500,000 tonnes exported through country-wise quotas but recorded as domestic sales," he added.

Meanwhile, the government has set the all-India sales quota for October at 2.40 million tonnes, 6% lower than the quota of 2.55 million tonnes set in October last year, but 2% higher than September quota of 2.35 million tonnes. It has raised the sugar sales quota for October for Maharashtra while lowering it for Karnataka and Uttar Pradesh, according to a notification. 

Maharashtra's sales quota has been raised by over 2% on month to 726,730 tonnes in October. For Karnataka and Uttar Pradesh, the quotas have been lowered, respectively, by 4% and 0.2% on month to 271,166 tonnes and 948,883 tonnes. The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear the arrears of sugarcane farmers. 

The following table details the state-wise allocation of sugar sales limits for October, with the month-ago level, and the month-on-month change in percentage:

End

Reported by Afra Abubacker

Edited by Rajeev Pai

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