Despite the reduction in sugar production by 55-60 lakh tonnes, there will be no crisis situation

21-Mar-2025 06:24 PM

No Sugar Crisis Despite 55-60 Lakh Tonne Production Drop – ISMA

Sugar Production Decline (2024-25):

• Production drop: 319 lakh tonnes → 264 lakh tonnes (↓55-60 lakh tonnes).
• Reasons: Lower sugarcane production & decreasing sugar recovery rate.

Supply & Availability Outlook:

• Previous stock: 80 lakh tonnes.
• Current production estimate: 264 lakh tonnes.
• Total available supply: 344 lakh tonnes.
• Expected domestic consumption: 280 lakh tonnes.
• Planned exports: 10 lakh tonnes.
• Projected closing stock (Sep 2025): 54 lakh tonnes.

Sugarcane Crushing & Future Production:

• As of March 15, 2025: 238 lakh tonnes produced, 200 mills still crushing.
• Maharashtra & Karnataka mills mostly closed, but special crushing session in Karnataka & Tamil Nadu (July-August) to boost production.
• Better sugarcane production expected for 2025-26 season.

Market Impact & ISMA’s Warning:

• ISMA dismisses crisis fears, warns against rumors of severe shortages.
• Speculative price hikes could benefit traders, but supply remains stable.
• Export of 10 lakh tonnes will support millers & help clear sugarcane dues.