No availability crisis despite huge drop in sugar production

09-May-2025 05:30 PM

New Delhi. The current season of sugarcane crushing and sugar production is nearly complete, and the new marketing season will officially begin in October 2025. During this period, the industry will have sufficient sugar stock to meet domestic demand.

However, by the end of the current marketing season on 30 September 2025, the sugar stock with the industry may drop below 50 lakh tonnes.

Typically, the industry should maintain a stock of at least 55 lakh tonnes to cover the first two and a half months of the next season, based on an average monthly consumption of 22 lakh tonnes.

According to industry analysts, this situation could create some imbalance in the supply-demand equation, but it is not expected to lead to a serious availability crisis.

The outlook for sugar production in the 2025-26 marketing season is more positive, which should help stabilize supply. Consequently, sugar prices in the market are also expected to remain relatively stable.

An increase of Rs 15 per quintal has already been announced in the Fair and Remunerative Price (FRP) of sugarcane. With this, the FRP for sugarcane with an average sugar recovery of 10.25 percent will rise from Rs 340 to Rs 355 per quintal, effective in the 2025-26 marketing season.

This hike is expected to encourage an 8–10 percent increase in sugarcane cultivation. Sugarcane, a long-maturity crop, benefited from favorable monsoon rains last year,

and another good monsoon this year could further boost production. This would ensure a better supply of raw material for sugar mills and potentially lead to increased sugar output.