Sugar stockpiles 11% YoY lower in India despite surplus production
India’s domestic sugar sales are expected to fall 3.5% during Oct 2025–Feb 2026, while stocks are down 11% year-on-year despite higher production. Weak cash flows, lower cane crushing and poor recovery in Uttar Pradesh raise concerns for mills this season.
According to Food Ministry’s data, the domestic sugar sales in India as per the quota allocated by it is expected to drop 3.5% to 110.5 lt between October 2025 and February 2026 from 114.5 lt in the corresponding period of 2024-25By Prabhudatta Mishra
Sugar stock in India as on January 31 was estimated to be 11 per cent lower at 74.49 lakh tonnes (lt) from 84.61 lt in the year-ago period, despite 17 per cent higher production and 4 per cent lower consumption during October-January of the current sugar season.
Industry experts said that sugar mills should think about other alternatives as their cash flow is not going to improve either from ethanol or from sugar, potentially forcing them to fend for themselves.
“There are 20 lt less crushing of sugarcane this year in Uttar Pradesh and the recovery rate is still below 10 per cent. Besides, there was marginal 3 per cent drop in the State’s sugar output during January when the crushing is at its peak,” said an industry expert, adding there could be a shock from UP this season though smaller in scale from what was experienced in Maharashtra last year.
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Source : The Hindu Business line
