Impact on Sugar Production in India: 2024-25 Season Estimates

27-Jan-2025 11:04 AM

Impact on Sugar Production in India: 2024-25 Season Estimates
★ The National Federation of Cooperative Sugar Factories has projected sugar production for the 2024-25 season at 27 lakh tonnes (lt), a decline from 319 lt in 2023-24. Key states like Uttar Pradesh, Maharashtra, and Karnataka are witnessing a drop in production:
Uttar Pradesh: From 103.65 lt to 93 lt
Maharashtra: From 110.2 lt to 86 lt
Karnataka: From 53 lt to 41 lt
This estimate is also lower than last month's projection of 280 lt, which had slightly higher figures for all three states.

Reasons for Decline
1. Drought and Excess Rainfall:
Drought in 2023 affected cane availability in Maharashtra and Karnataka.
Excess rainfall in October led to premature flowering of cane, reducing growth and sucrose accumulation.
2. Pests and Diseases:
Uttar Pradesh: Cane crops were impacted by fungal disease red rot and pest top shoot borer.

★ Demand and Supply Outlook
Opening Stock: 80.2 lt
Production: 270 lt
Domestic Consumption: 295  lt
Exports: 10 lt
★ By the end of the season, sugar stocks are expected to drop to 45 lt, sufficient for 1.8 months of domestic consumption. However, additional rainfall in 2024 may boost production in 2025-26, helping balance supply.
★ The current situation could impact both the sugar industry and domestic markets.