Sugar Production Likely to End Early This Season: NFCSF

28-Jan-2025 09:08 AM

Sugar Production Likely to End Early This Season: NFCSF
Production Estimate for 2024-25: NFCSF estimates sugar production at 270 lakh tons, 15% lower than the previous year's 319 lakh tons.

Key Challenges:
★ In Maharashtra and Karnataka, delayed crushing and low rainfall affected productivity.
★ In Uttar Pradesh, pest infestations reduced sugar recovery from cane.
★ Crushing to End Early: Many mills may stop crushing by the end of March.

Mills in Operation:
★ As of January 15, 507 mills were operating, compared to 524 in the same period last year.
In Uttar Pradesh, 122 mills are operating (up from 120 last season).
In Maharashtra, the number of mills decreased from 206 to 195.
In Karnataka, the number increased from 74 to 77.

Cane Crushing and Sugar Production:
★ By January 15, 1482.15 lakh tons of cane were crushed, 8% less than last year.
★ Total sugar production reached 130.55 lakh tons, down 13.6% from the previous year.

Sugar Recovery Rates:
National average: 8.38% (down from 9.37% last year).
Uttar Pradesh: 9.05% (last year 9.9%).
Maharashtra: 8.8% (last year 8.95%).
Karnataka: 8.5% (last year 9.6%).
Demand for Ethanol and Exports:
★ 40 lakh tons of sugar will be used for ethanol production, and 10 lakh tons will be exported.
★ Prices are supported by increased ethanol demand and export quotas.

Stock and Market Outlook:
★ Adequate stock is expected by the season’s end, but overall production remains weak.
★ February’s export quota will be a key factor in market dynamics.
★ Overall, reduced production has been offset by strong ethanol and export demand, keeping prices stable.