Domestic sugar production is expected to fall to 265 lakh tonnes

30-Jan-2025 06:08 PM

It looks like there’s a significant decline expected in sugar production for the 2024-25 season. This drop, from 319 lakh tonnes in the previous season to just 265 lakh tonnes, could have wide-reaching effects on the domestic market and exports.

The reduction in production in key states like Maharashtra, Uttar Pradesh, and Karnataka could also impact the overall sugarcane supply and availability.

While the government’s estimate stands at around 320 lakh tonnes, the lower forecast by industry bodies like AISTA and the NFCSF points to a potential mismatch in projections.

With an expected export of only 10 lakh tonnes and significant use of sugarcane for ethanol production, the sugar industry could face challenges in meeting both domestic demand and export commitments.

This may lead to higher sugar prices and possibly a tightening of supply, which could impact consumers and businesses.

It’s also interesting that, despite the overall decline, sugar production in other states is expected to slightly improve.

What do you think the consequences might be for both the domestic market and export opportunities in this situation?