The demand and supply situation of sugar is likely to remain complex in the current season
29-Oct-2024 11:10 AM
New Delhi. On the basis of the estimate made about production and use at the government level, it can be said that the equation of demand and supply of sugar in the domestic division may remain somewhat complex during the current marketing season.
The Union Food Ministry has estimated the production of 330 lakh tonnes of sugar in the country during the current marketing season (October-September) of 2024-25, while on the other hand, it has expressed the possibility of use of 335 lakh tonnes.
In this, 290 lakh tonnes of sugar is expected to be consumed directly for human consumption (including industrial) while 45 lakh tonnes of sugar can be used in ethanol production.
At the beginning of the current marketing season i.e. on October 1, 2024, the indigenous industry had a previous outstanding stock of 79 lakh tonnes (government estimate) of sugar,
from which after deducting the required quantity of 60 lakh tonnes for consumption in the next three months, a surplus stock of 19 lakh tonnes will remain.
To meet the demand, a stock of 5 lakh tonnes can be used from this. According to official data, domestic sugar production declined from 328 lakh tonnes in the 2022-23 season to 320 lakh tonnes in the 2023-24 season,
but with the help of good sugarcane yield, production is expected to increase by 10 lakh tonnes to 330 lakh tonnes in the 2024-25 season.
Sugarcane sowing area increased by 11 thousand hectares to 57.68 lakh tonnes per hectare, while the condition of the crop is very good due to abundant monsoon rains in the major producing areas.
Sugarcane crushing will start from November 15 in Maharashtra, the most prominent sugar producing state, and there is a possibility of some improvement in production there.
Based on the study and analysis of the above data, it appears that the government would not want to take the risk of allowing commercial export of sugar in the near future.
The panel of ministers has also put on hold a proposal to increase the ex-factory minimum selling price of sugar as it feels the retail market prices are ruling at a much higher level.