Sugar production drops 17% in current marketing year

ISMA noted that the delayed commencement of crushing operations in major sugar-producing states contributed to the production dip

Sugar production in India has declined by 17 per cent to 61.39 lakh tonnes as of December 15, 2024, in the ongoing 2024-25 sugar marketing year (October-September), compared to 74.05 lakh tonnes during the same period last year, according to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA).

The reported figures exclude sugar diverted towards ethanol production, a significant factor influencing the overall numbers.

ISMA noted that the delayed commencement of crushing operations in major sugar-producing states contributed to the production dip. In Karnataka, mills began operations 7-12 days later than usual, while Maharashtra saw an even more significant delay of 15-20 days compared to the previous year.

State-wise Production Overview

Uttar Pradesh: Sugar output increased marginally to 23.04 lakh tonnes, up from 22.11 lakh tonnes last year.

Maharashtra: Production fell sharply to 16.78 lakh tonnes, compared to 24.45 lakh tonnes in the corresponding period of 2023-24.

Karnataka: Sugar output dropped to 13.85 lakh tonnes from 17.56 lakh tonnes in the previous marketing year.

One of the key trends observed this year is the increased diversion of sugar for ethanol production. ISMA estimates that 40 lakh tonnes of sugar will be diverted towards ethanol during the 2024-25 marketing year, a substantial rise from 21.5 lakh tonnes diverted in the previous year.

The growing focus on ethanol production aligns with the government’s push for energy diversification and achieving the target of 20 per cent ethanol blending by 2025.

The decline in sugar production coupled with increased diversion towards ethanol presents a mixed scenario for the sugar industry. While ethanol initiatives enhance profitability and contribute to energy goals, reduced sugar availability could impact both domestic and export markets.