Sugar Production Season Nears End with Lower Output

24-Apr-2025 04:03 PM

New Delhi. India’s sugarcane crushing and sugar production season is now in its final phase, with most mills across the country closing operations.

As of April 15, 2025, only 22 sugar units were operational in Uttar Pradesh and 16 in other states. While the average sugar recovery rate showed some improvement in March, experts expect it to weaken again due to the rising heat in April.

So far, around 254 lakh tonnes of sugar have been produced in the country, significantly lower than the output during the same period last year. Maharashtra, one of the key sugar-producing states, has seen the sharpest decline—down 27%, from 110 lakh tonnes to 80.76 lakh tonnes.

Of the 200 mills that started crushing in Maharashtra this season, 199 have shut down, leaving just one operational unit in the Pune division.

Production has also fallen in Uttar Pradesh and Karnataka, leading to a substantial decline in total sugar output at the national level.

However, while the Indian Sugar Mills Association (ISMA) maintains that the supply-demand balance will be maintained and final stocks will be normal, other bodies like the National Federation of Cooperative Sugar Factories (NFCSF) and the All India Sugar Trade Association (AISTA) differ in their assessments.

The key disagreement lies in domestic consumption estimates—ISMA projects usage at 280 lakh tonnes, whereas NFCSF and AISTA estimate it to be around 290 lakh tonnes.

Production forecasts also vary: ISMA estimates 264 lakh tonnes, NFCSF 259 lakh tonnes, and AISTA 254 lakh tonnes for the 2024–25 season.

As the season ends, attention now turns to which estimate proves to be most accurate, as the industry prepares for the next cycle amidst tightening supplies and uncertain demand projections.