Sugar output continues to be 18% lower from year-ago, total output may be 26 mt in 2024-25
Sugar output dropped by 18.34% to 25.7 mt so far this season, with production likely to end at 26.1 mt. Maharashtra, Karnataka, and UP report significant declines. Ethanol diversion down due to pricing issues. NFCSF seeks sugar MSP hike and revised ethanol prices to support mill viability and exports.
With 18 sugar factories closed in past fortnight, the crushing operation may soon end this year with the sugar production estimated to be around 26 million tonnes (mt) by September 30.
According to data compiled by the National Federation of Cooperative Sugar Factories (NFCSF), sugar output between October 1, 2024 and April 30, 2025 has dropped 18.34 per cent to 25.7 million tonnes (mt) from 31.47 mt in the year-ago period.
Releasing the update, the cooperative sugar body said the current production number reflects a significant decline of 5.77 mt. Taking into account output from all the States and factoring in regional recoveries, the total sugar production of the country is estimated to be 26.1 mt by season’s end.
Uttar Pradesh, the largest producer, has seen 122 factories undertake crushing this season, of which 111 have concluded operations. Out of 94.8 mt of sugarcane crushed, the State has produced 9.25 mt of sugar (10.34 mt), achieving an average sugar recovery of 9.75 per cent.
In Maharashtra, 200 factories participated this season, of which 199 have completed crushing. Only one unit remains operational and is expected to conclude by May 8. The State has crushed 85.2 mt of sugarcane at an average recovery of 9.50 per cent and has produced 8.1 mt of sugar ( 10.99 mt).
In Karnataka, all 79 factories have completed operations, crushing 50.2 mt of cane with an average recovery of 8.05 per cent. The sugar production was 4.04 mt (5.14 mt), NFCSF said adding after resumption of crushing in some mills in the monsoon season, the final output is expected to reach 4.2 mt.
In Tamil Nadu, 23 of 30 factories have completed crushing 5.7 mt of cane at an average recovery of 8.35 per cent and have produced 0.48 mt of sugar ( 0.86 mt), which may rise to 0.7 mt after end of special season.
NFCSF also said that with around 3.2 mt of sugar expected to be diverted for ethanol production, the closing stock of sugar is expected to be 4.8-5 mt.
Diversion to ethanol
For Ethanol Supply Year (ESY) 2024-25 that runs from November to October, the sugar industry had proposed to divert 5 mt of sugar equivalent towards ethanol production. Against this, oil marketing companies (OMCs) had allocated 4 mt.
However, the actual diversion is now expected to be slightly below the earlier estimate of 3.5 mt due to the absence of a price revision for ethanol produced from sugarcane juice and B-heavy molasses, which has made sugar production comparatively more financially attractive and the shift has led to an additional 0.3 mt of sugar being produced which should have gone for ethanol.
Hailing the Cabinet decision to raise sugarcane price by 4 per cent, the NFCSF has urged the government to address two critical issues — an upward revision of the Minimum Selling Price (MSP) of sugar and a corresponding increase in ethanol procurement prices, particularly for ethanol derived from sugarcane juice and B-heavy molasses.
“We also request the continuation of a forward-looking sugar export policy for the upcoming 2025–26 season, especially benefiting port-based States like Maharashtra, Karnataka, Gujarat and Tamil Nadu, to ensure that national average ex-mill sugar prices remain sustainable,” it said.
The all-India average ex-mill sugar price is currently ranging between ₹3,880/quintal and ₹3,930/quintal, it said.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : The Hindu Businessline
