Heavy crushing of sugarcane continues in various states

12-Dec-2024 08:24 PM

The sugarcane crushing season is in full swing across India's major sugar-producing states, including Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, Gujarat, Andhra Pradesh-Telangana, Bihar, Madhya Pradesh, Punjab, Haryana, and Uttarakhand. However, despite the heavy crushing, the sugar production is falling short of last year's figures due to a low recovery rate from sugarcane.

The Union Agriculture Ministry has forecasted a decrease in domestic sugar production for the 2024-25 marketing season, predicting a drop from 4531.58 lakh tonnes to 4399.30 lakh tonnes compared to the previous season.

This estimate might be overly optimistic, as natural disasters, pest outbreaks, and diseases are likely to further lower the actual production. Additionally, a significant portion of sugarcane is being diverted to ethanol production,

with an estimated 40-42 lakh tonnes of sugarcane expected to be used for ethanol in 2024-25, up from about 21 lakh tonnes in the previous season. This diversion could further reduce sugar production for food and industrial purposes.

Despite the lower sugar output, there is no immediate risk of a domestic sugar shortage in India for the 2024-25 season, as the industry has a substantial stockpile.

However, this situation is expected to severely limit India's ability to export sugar commercially, reducing the potential for sugar exports in the current season.