• India’s sugar production is facing a significant setback due to a combination of last year’s drought and this year’s excessive rainfall. These weather conditions have led to a decline in sugarcane yields across the country. India’s sugar production is expected to drop to around 27 million metric tons in the 2024/25 season, down from 32 million tons last year. This is below the national consumption of more than 29 million tons.
• Maharashtra, Karnataka, and Uttar Pradesh, which together account for over 80% of India’s sugar production, have been heavily impacted. The summer drought and excessive monsoon rainfall have hindered crop growth, reducing yields by 10 to 15 tons per hectare.
• In Maharashtra and Karnataka, lower-than-average rainfall and reduced reservoir levels further stressed the sugarcane crops. Uttar Pradesh faced the additional challenge of red rot disease, which also lowered yields.
• As a result, India is unlikely to have any sugar surplus available for exports this season, which could impact global sugar prices. The government may allow limited exports only if a surplus remains after meeting domestic ethanol requirements.

Source: Economic Times