Sugar Closing Stock Expected to be 2.6 Million Tonnes Lower Than Last Year: ISMA

07-Apr-2025 10:35 AM

Sugar Closing Stock Expected to be 2.6 Million Tonnes Lower Than Last Year: ISMA
★ The Indian Sugar Mills Association (ISMA) has projected sugar production in the current season to reach 26.4 million tonnes, which is approximately 16–18% lower than last year. This decline is attributed to drought in Maharashtra and disease affecting sugarcane crops in Uttar Pradesh.
★ The season began with a stock of 8 million tonnes, which is expected to drop to around 5.4 million tonnes by the end of the season.
★ About 3.5 million tonnes of sugar are estimated to be diverted for ethanol production.
★ The estimated sugar consumption for 2024–25 is around 28 million tonnes, slightly down from 29 million tonnes last year.
★ Approval has been given for the export of 1 million tonnes of sugar this season.
★ This raises the question: Will there be enough sugar stock in the country?
★ With an annual consumption of 28 million tonnes — averaging 2.3 million tonnes per month — the closing stock of 5.4 million tonnes would be sufficient for only about 2.5 months of consumption.
★ Given the lower carryover stock and reduced production compared to the previous season, sugar prices are expected to remain firm during the upcoming festive season.