Decline in Indian Sugar Production: All-India Sugar Trade Association

12-Mar-2025 11:40 AM

Decline in Indian Sugar Production: All-India Sugar Trade Association
★ India's sugar production for the 2024-25 season is estimated to decline by 19%, bringing total output down to 25.8 million metric tons, which is 19.1% lower than the previous year. This marks the first time that production will fall below the estimated consumption of 29 million tons. The primary reason for this decline is the reduced supply of sugarcane in key producing states.  
★ Maharashtra, India's largest sugar-producing state, is witnessing an early closure of sugar mills—almost two months ahead of schedule—resulting in a significant drop in production. Compared to last year’s 11 million tons, production this year is estimated at 8 million tons.  
★ India’s opening sugar stock for the 2025-26 season is expected to decrease from 7.98 million tons to 3.78 million tons. Due to this lower supply, domestic sugar prices have already risen by 10%, and slow exports could further push global sugar prices higher.  
★ Adverse weather conditions in key sugar-producing states like Maharashtra, Karnataka, and Uttar Pradesh have impacted sugarcane availability, forcing mills to shut down early. With lower production and potential export openings, there is concern that sugar stocks may remain low by the end of the season.