The first quarter of the current season, which began on October 1, 2024, had a notable 15.6% decrease in India’s sugar production, which came to 9.4 million tones (MT) according to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA).This amount is lower than the 11.3 MT produced during the same period previous year, mainly because of lower output in a number of states and a greater diversion of sugar for the manufacturing of ethanol. According to the association, an increase in sugar diversion for ethanol which is expected to reach 4 MT for the full season, up from 2.1 MT in the previous season. As well as delayed start for sugar mills in Maharashtra and Karnataka are the main causes of the decline in net sugar production. According to the most recent data, 493 factories were in operation between October and December, down from 512 over the same period the previous year. There was a brief interruption in Uttar Pradesh during the final week of December because of rain-related delays in cane supplies, even though crushing rates in major states like Uttar Pradesh, Maharashtra, and Karnataka have improved over the previous year.
Maharashtra’s production dropped to 3 MT from 3.8 MT, while Uttar Pradesh, the biggest producer of sugar, saw its output decline to 3.2 MT from 3.4 MT year over year. Karnataka also reported a drop in production, which went from 2.4 MT to 2.04 MT. By the end of January, ISMA intends to publish its second advance estimate for sugar production. The first estimate, which includes ethanol diversion, projects that the total amount of sugar produced during the year will be 33.3 MT.
According to the association, domestic sugar consumption will drop from 29.1 MT in 2023–2024 to 28 MT in 2024–2025. Compared to the same period last year, domestic sales for the first four months of this year have been found to be 0.7 MT lower. Additionally, the general elections that took place from April to June 2024 raised demand, which resulted in a greater sales quota the year before. It is estimated that the average monthly home usage will be around 2.3 MT. 9.2 MT of sugar are allotted for open market sales during the current sugar season, which runs from October to January.