Good increase expected in domestic sugar production during the upcoming marketing season
17-May-2025 01:50 PM
New Delhi. Domestic sugar production is expected to decline by about 58 lakh tonnes from 319 lakh tonnes in the 2023-24 season to 261 lakh tonnes in the current season (October–September) of 2024-25.
The sugarcane crushing season nearly ended by May 15, with around 257.50 lakh tonnes of pure sugar produced by that date.
A special crushing session is planned in southern Karnataka and Tamil Nadu from June to July, which could yield an additional 3.50 lakh tonnes of sugar.
According to industry analysts, the sharp decline in sugar production was primarily due to a significant drop in the supply and availability of sugarcane and a steep reduction in the average sugar recovery rate.
The lack of rainfall in 2023 and pest and disease outbreaks in 2024 adversely affected the sugarcane crop. These challenges led to a decrease in the average yield, total harvest, and the efficiency of sugar recovery from the cane.
The Indian Sugar and Bio Energy Manufacturers Association (ISMA) projects a positive outlook for sugar production in the 2025-26 marketing season.
This is based on anticipated increases in sugarcane acreage in major producing states like Maharashtra and Karnataka, and the focus on cultivating new, high-yielding sugarcane varieties in northern states. The monsoon is also expected to be favourable this year, which should help improve sugar recovery rates.
Although the ex-factory minimum selling price (MSP) of sugar has remained at Rs 3100 per quintal since it was set in 2019, actual sugar prices are currently much higher, providing financial relief to mills.
However, the government has raised the fair and remunerative price (FRP) of sugarcane by Rs 15, or 4 percent, from Rs 340 to Rs 355 per quintal for the 2025-26 season, which will increase production costs for sugar mills.
The demand and supply dynamics of sugar are expected to remain complex over the next few months, suggesting that domestic market prices may remain firm with only limited fluctuations.