Sugar output marginally lower on year at 25.59 MT
India’s 2024‑25 sugar output has reached 25.59 MT; ISMA expects the season to finish near 26.4 MT after diverting 3.5 MT to ethanol. Production is down from last year’s 29.9 MT, yet prices should stay steady with a projected 5.4 MT carry‑over—well above the two‑month buffer. Domestic use is pegged at 27 MT, and 0.4 MT has already been exported under a 1 MT quota.
Sugar production by mills for the ongoing 2024-25 season (October- September) has surpassed 25.59 million tonne (MT), as only a weeks are left for the harvest season to end.
Production of the sweetener for the whole season is likely to be around 26.4 million tonne MT, which excludes 3.5 MT allocated for the ethanol, according to Indian Sugar & Bio-Energy Manufacturers Association (ISMA).
This is against the output of sweetener at 29.9 MT in 2023-24 season which excludes 2.1 MT of sugar was diverted for biofuel production.
“Despite the drop in production, sugar prices are expected to remain stable as the season is set to close with around 5.4 MT of sugar as opening stock for 2025-26 season,” Deepak Ballani, director general, ISMA, told FE.
Opening stock at the beginning of the current sugar season on October 1 was 8 MT.
Due to seasonal reasons, 28 mills in Uttar Pradesh, Karnataka and Tamil Nadu are in operation now, out of total 534 units in the country. Of the operational units, 16 s will close for processing by the first week of May.
He said ‘coupled with a reasonably good production outlook, there is no concern over availability or prices,”. Domestic consumption of sweetener is projected at around 27 MT.
The carry forward sugar stocks at the end of the 2024-25 season would be higher than the normative requirement of two months’ production, estimated at 4.5 MT, according to ISMA.
The sugar processors body at the beginning of the year had projected sugar production at 27.2 MT and reduction is output because of reduced sugarcane yield in Maharashtra and Karnataka, which has brought down cane availability.
Benefitted by the above normal monsoon rains last year, sugar cane planting for 2025-26 season in the southern region has reportedly shown notable improvement in key producing states such as Maharashtra and Karnataka. “Crushing season is anticipated to begin as per schedule in October, 2025 ensuring adequate supply position,” Ballani of ISMA said.
In the case of northern states, ongoing varietal replacement initiatives are encouraging outcomes which may lead to enhanced cane yield and sugar recovery, industry sources said.
0.4 MT sugar exported in the current season.
Meanwhile, industry sources said that so far 0.4 MT of sweetener has been exported in the current season while a contract for 0.3 MT of shipment has been entered.
After restricting the sweetener exports in 2023-24 season, the government in January, 2025 had allowed the exports of one MT of sugar in the ongoing 2024-25 season, after taking into consideration domestic availability and diversion towards ethanol production.
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Source : Financial Express
