Daijiworld Media Network- New Delhi
New Delhi, Jan 16: India’s sugar production has declined by 14 per cent in the sugar season year (SSY) 2025 compared to the previous year, raising concerns about missing the earlier estimates for SSY25, according to a report by Centrum.
The report highlights that India’s total sugar production is now projected to be around 27 million metric tonnes (MMT), falling short of the earlier estimate of 28 MMT. This represents a significant reduction from the 31.8 MMT produced in SSY24.
“There is nearly a 14 per cent decrease in sugar production compared to the previous year, primarily due to higher diversion towards ethanol and lower cane availability,” the report stated.
Year-on-year (YoY), the reduction amounts to approximately 2 million metric tonnes (MMT), with total production at 13.1 MMT, down from 15.1 MMT in the previous season.
Maharashtra, one of the largest sugar-producing states, has witnessed a sharp 19 per cent YoY decline in production. This decrease is attributed to a 13 per cent fall in cane availability during the past fortnight and a 17 per cent drop for the season.
In contrast, Uttar Pradesh (UP) has reported a relatively smaller 7 per cent decline in sugar production despite slightly higher crushing, indicating a greater diversion of sugarcane towards ethanol.
Nationwide, sugarcane crushing has decreased by 8 per cent to 148 MMT so far this season, down from 161 MMT during the same period last year. While the overall performance has improved slightly over the past fortnight, the cumulative decline remains significant.
The report also noted that the Government of India (GoI) is considering an export quota of 1 MMT. This move is expected to support domestic sugar prices, particularly in light of the depreciation of the rupee, thereby achieving favourable realizations.
Furthermore, sugar prices have continued their upward trend, rising by an additional Rs 1,000-Rs 1,500 per ton in UP, reaching Rs 39,500-Rs 40,000 per ton. This is likely to provide a significant boost for the industry.