The equation of demand and supply of sugar is likely to remain balanced

06-Jun-2025 05:20 PM

New Delhi. In the current marketing season, there is a strong balance between the domestic demand and supply of sugar, and this trend is likely to continue for the next few months. However, the outstanding surplus stock of sugar is expected to decline significantly—from 80 lakh tonnes at the end of the 2023–24 season to around 54 lakh tonnes or even lower by the end of the 2024–25 season.

The new sugarcane crushing season will officially begin in October 2025 and run through September 2026. A notable increase in sugar production is expected during this period, which will further improve the supply-demand balance. According to ISMA, domestic sugar production in the current year is likely to fall by 55 lakh tonnes—from 319 lakh tonnes in the 2023–24 season to 264 lakh tonnes. However, due to the large surplus stock from previous years and relatively low consumption, there is no threat of a sugar shortage.

The government continues to allocate free sale monthly quotas regularly, and millers are reportedly facing no issues in the delivery of sugar. Additionally, sugarcane sowing area is expected to rise this year, supported by a favorable monsoon forecast. This would lead to increased sugarcane availability, providing sugar mills with more raw material.

The central government has already raised the Fair and Remunerative Price (FRP) of sugarcane by Rs 15 per quintal, which has maintained farmers' interest and enthusiasm for sugarcane cultivation. As a result, the supply and availability of sugar are expected to be even more comfortable during the 2025–26 marketing season.