NFCSF estimates sugar production to decline to 270 lakh tonnes
India’s sugar production for the 2024-25 season is expected to drop by 10 lakh tonnes, primarily due to drought, disease, and pest issues in key states like Uttar Pradesh, Maharashtra, and Karnataka. While sugar prices may rise due to lower supply, India’s stock of 45 lakh tonnes should cover domestic needs and allow some exports. A recovery is expected in 2025-26.
iGrain India – The report from the National Federation of Cooperative Sugar Factories (NFCSF) paints a concerning picture for sugar production in India for the 2024-25 marketing season.
The expected decline in production by 10 lakh tonnes, dropping from 319 lakh tonnes to 270 lakh tonnes, is attributed to multiple factors, including the effects of a severe drought in 2023, reduced sugarcane yields, and lower recovery rates of sugar from the cane.
The most affected states—Uttar Pradesh, Maharashtra, and Karnataka—are all seeing significant reductions in sugar production.
The report also highlights problems like red rot fungal disease in Uttar Pradesh, as well as an insect infestation affecting sugarcane crops, further exacerbating the situation.
Maharashtra is facing an even more serious problem, with the possibility of the crushing season ending early due to the lack of sugarcane.
Despite these challenges, the NFCSF’s estimate suggests that India will still have a stock of about 45 lakh tonnes of sugar by the end of the marketing season, which could be enough to cover domestic consumption and allow for some export.
However, the Federation anticipates a recovery in domestic sugar production in the 2025-26 season, which will likely improve the outlook for the sugar industry.
What do you think this will mean for sugar prices and the wider market in India?
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Source : Investing.com
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