Sugar Production and Consumption Decline in Current Season: ISMA

02-Jan-2025 02:54 PM

Sugar Production and Consumption Decline in Current Season: ISMA
The Indian Sugar Mills Association (ISMA) estimates domestic sugar consumption for the 2024-25 season at approximately 280 lakh tons, lower than the previous season.
Key Reasons for Reduced Consumption:
Reduced Domestic Sales Quota: For the first four months, the quota is 7 lakh tons lower than last year.
Previous Year Demand Surge: Increased demand last season due to general elections and hotter weather.
ISMA projects an average domestic consumption of 235 lakh tons over the next eight months, resulting in total consumption of around 280 lakh tons.
Production Insights:
By December 31, 2024, sugar production reached 95.40 lakh tons, compared to 113.01 lakh tons in the same period last year.
Active sugar mills have also declined from 512 last year to 493 this year.
Ethanol Diversion:
40 lakh tons of sugar is expected to be diverted for ethanol production this season, a significant increase from 21.5 lakh tons last year.
Future Projections:
ISMA will release its second advance estimate at the end of January 2025 after analyzing satellite imagery.
Implications:
Lower production and increased ethanol diversion may support sugar prices, but domestic consumption constraints could moderate demand growth.