Sugar output in India is likely to dip to 30 mt in 2025 amid increased ethanol diversion.
ICRA projects India’s sugar production at 30 million tonnes for the 2025 season, down from 32 million due to increased ethanol diversion. Revenue for sugar mills is expected to rise by 10% in FY2025, driven by higher sales, stable prices, and expanded distillery capacities. Sugar stocks are forecasted to be 9.1 million tonnes by September 2024, up from 5.6 million tonnes the previous year, indicating a stock increase to 3.8 months of consumption
Bengaluru: The ICRA (Investment Information and Credit Rating Agency) has pegged India’s net sugar production at 30 million tonnes for the 2025 sugar season starting in October, down from 32 mt in the previous year, “as higher diversion of sugar towards ethanol production is expected”, reports The Hindu businessline.
ICRA estimated that the revenues of integrated sugar mills would increase by 10 percent in FY2025. Higher sales volumes, firm domestic sugar prices, and an increase in distillery volumes on the back of the operationalisation of new capacities will be the growth drivers.
ICRA expects the closing sugar stock to be around 9.1 mt as of September 30, 2024, significantly higher than the 5.6 mt stock on September 30, 2023. This would be equivalent to 3.8 months of consumption (compared to 2.4 months the previous year). The closing stock is expected to further increase over four months by September 30, 2025, according to ICRA’s estimates.
Source Link : https://www.chinimandi.com/sugar-output-in-india-is-likely-to-dip-to-30-mt-in-2025-amid-increased-ethanol-diversion/
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