India’s Net Sugar Production Likely To Dip To 27.4 Mn MT In SY25: Report
India’s sugar production is projected to decline to 27.4 million MT in SY25 due to lower cane yields in key states and increased diversion for ethanol. By December 2024, sugar output was 9.54 million MT, down from 11.3 million MT the previous year. Domestic sugar prices rose to ₹38.5/kg in January 2025, while international sugar prices fell. Ethanol blending reached 16.4% by ESY25, with 930 crore litres allocated.
Mainly attributed to lower cane yields across three largest sugar producing states along with an increase in sugar diversion for ethanol production, the net sugar production is expected to decline to 27.4 million MT in sugar year 2025 (1 October to 30 September) against 32 million MT in SY24, according to a report by Icra.
The report added that for SY25, the sugar production stood at 9.54 million MT till 31 December 2024, over 11.3 million MT of sugar during the same period in the previous year. The report attributed this to the decline in output in Maharashtra. Uttar Pradesh currently leads in sugar mill operations, followed by Maharashtra and Karnataka. The number of operating sugar factories stood at 493 in FY25 against 512 last year, the report highlighted.
Due to the expected decline in sugar production in the current season, domestic sugar prices (Uttar Pradesh) increased sharply in January 2025 to Rs 38.5 per kilogram (kg) compared to Rs 36 per kg in December 2024, as per the report. As far as the international sugar prices are concerned, such prices of raw sugar declined to USD 449 per MT in December 2024 over USD 477 per MT in November 2024.
Such prices of white sugar, too, declined to USD 529 per MT in December 2024 over USD 560 per MT in November 2024. The report further stated that the premium between white and raw sugar stood at USD 80 per MT in December 2024, lower than USD 83 per MT during the previous month.
In the two months (2M) of ethanol supply year (ESY; from 1 November to 31 October) 2025, India achieved a cumulative ethanol blending ratio of 16.4 per cent while the December 2024 blending rate stood highest at 18.2 per cent. The report stated that for ESY25, 930 crore litre of ethanol have been allocated.
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Source : Business World
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