Indian sugar mills have reported a production of 9.54 million metric tons of sugar since the season commenced on October 1, marking a 15.5% decrease year-on-year, according to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). This decline is attributed to falling cane yields in the country’s three largest sugar-producing states.
Key Highlights:
Production Declines:
Maharashtra: Sugar output fell 21.5% to 3 million tons.
Karnataka: Production decreased by 18.1% to 2 million tons.
Uttar Pradesh: Output dropped 4.5% to 3.28 million tons.
Impact on Exports:
The reduced sugar output raises concerns about India’s ability to allow exports during the season ending in September 2025, which could bolster global sugar prices.
The sugar industry is aiming for 2 million tons of exports, but government officials suggest limited exports may only occur if there is surplus after meeting ethanol requirements.
Operational Changes:
By the end of December, 493 sugar mills had commenced crushing operations, down from 512 during the same period last year.
Reasons for Yield Declines:
In Maharashtra and Karnataka, cane yields have suffered due to drought conditions from the previous year.
In Uttar Pradesh, the spread of red rot disease has further impacted yields.
Industry Perspectives:
A senior industry official remarked, “The production is lower than our expectations. Exports now look difficult in the current season.”