The fall in sugar production is expected to be compensated in the next season

08-May-2025 08:46 PM

Mumbai. Sugar production in India is likely to decline significantly during the current marketing season (October-September) of 2024-25 as compared to the 2023-24 season as production was affected due to reduced supply of sugarcane and fall in sucrose recovery rate. Sugar mills did not receive raw material (sugarcane) in sufficient quantity, hence the production season also ended before the scheduled time.


In the season 2023-24, net domestic production of about 319 lakh tonnes of sugar was recorded, which is estimated to decline to 260-261 lakh tonnes in 2024-25. Almost all the sugar mills in the country have either closed or are going to close soon.


After this, a new special session of sugarcane crushing will be organized in the total mills of Karnataka and Tamil Nadu in July-August and about 4 lakh tonnes of sugar is expected to be produced in it. The total estimated production of 260-261 lakh tonnes also includes the production of that special session.


But the domestic production of sugar is expected to improve in the new marketing season of 2025-26 because on one hand there is an expectation of increase in the sowing area of ​​​​cane and on the other hand, the condition of the crop is also expected to be better due to good rainfall and favorable weather conditions.


If the next production improves, there will be no crisis of sugar in the domestic sector. The new season of sugarcane crushing will formally start from October 2025, while the pace will increase from November.


In the season 2024-25, with a production of 260 lakh tonnes and an outstanding stock of about 79 lakh tonnes, the total availability of sugar will reach 339 lakh tonnes, out of which 280 lakh tonnes will be domestic consumption and 10 lakh tonnes will be exported and on 30 September 2025, there will be a surplus stock of 49 lakh tonnes.


This is a rough estimate. If the domestic consumption of sugar reaches 290 lakh tonnes, then the outstanding stock may fall further. However, sugar export is estimated to reach only 7-8 lakh tonnes.