India’s Festive Sugar Supply Strained; Early Crushing Start Crucial
03-Jul-2025 04:09 PM
India’s Festive Sugar Supply Strained; Early Crushing Start Crucial
★ India Faces Tight Sugar Supply Ahead of Festivals; Hopes Pinned on Early Start to Next Crushing Season.
★ During the August–November period, about 9 million tonnes of sugar are expected to be available from the current season for domestic sales. Considering festive demand, this supply is considered quite limited.
★ The government and sugar mills are hoping for an early start to the next crushing season in October to boost supply.
★ The monsoon will play a crucial role in determining whether sugar imports will be necessary.
★ In 2024, the government had set a quota of 9.3 million tonnes for the August–November period, and the situation was stable then due to a carry-forward stock of 8 million tonnes from the 2023–24 season.
★ If the closing stock for 2025–26 drops to 4.7 million tonnes, the government may require mills to produce 30–35 lakh tonnes of sugar during the first two months (October–November) of the next season.
★ During the same period in 2024–25, mills produced 2.79 million tonnes of sugar.
★ As of 30 June, the notional closing stock was reported at 11.2 million tonnes, and a sales quota of 2.2 million tonnes has been allotted for July.
★ The total sales quota from October 2024 to July 2025 stood at 22.95 million tonnes, down by 6% compared to last year's 24.5 million tonnes.
★ India saw a record sugar consumption of 29 million tonnes during the 2024–25 season.
★ June sugar sales fell short by around 1 lakh tonnes from the 2.3 million tonne quota due to early monsoon and below-normal temperatures.
★ May sales were also weaker than the same month last year.
★ Now, mills are expecting a surge in demand with upcoming festivals like Ganesh Chaturthi, Dussehra, and Diwali.
★ Industry associations have informed the government about the weak demand in June, but final sales data will be available only after July 20, once mills submit their monthly reports.