India's Sugar Output Tanks 16 Per Cent In 2024-25 Season, Industry Body Expresses Concern Over Supply

Based on the output forecast of 33.3 million tonne, the government approved the export of 1 million tonne of sugar earlier in January 2025.

However, as production ended up being lower than expected, it created a potential supply gap.

Source : Freepik

India’s sugar production saw a 16.13 per cent decline, reaching 23.71 million tonnes in the ongoing 2024-25 season. This unexpected drop disrupted government policy planning, which was initially based on higher output projections, the National Federation of Cooperative Sugar Factories (NFCSF) said on Sunday.

As the 2024-25 sugarcane crushing season (October-September) approached its end, NFCSF raised concerns about the uncertainty surrounding production figures, reported PTI. The initial estimate of 33.3 million tonnes was repeatedly adjusted downward, leading to complications in managing supply and demand expectations.

A segment of the industry submitted a production estimate of 33.3 million tonnes to the central government, which influenced policy decisions. Based on this forecast, the government approved the export of 1 million tonnes of sugar earlier in January 2025. However, as production ended up being lower than expected, it created a potential supply gap.

Key Sugar-Producing States Witness a Drop

NFCSF data revealed a significant decrease in sugar output across key producing states. Maharashtra, the largest sugar-producing state, recorded a decline from 10.04 million tonnes a year earlier to 7.86 million tonnes by March 15 of the current season.

In Uttar Pradesh, production dropped from 8.85 million tonnes to 8.09 million tonnes, while Karnataka’s output shrank from 4.95 million tonnes to 3.91 million tonnes during the period under review.

NFCSF President Harshvardhan Patil noted that most states would conclude crushing operations by March-end, with mills in Uttar Pradesh continuing until mid-April. He raised concerns over Maharashtra’s shortened crushing period, which lasted only 83 days—far below the economically viable range of 140-150 days.

"The entire sugar industry in Maharashtra has found itself in huge financial trouble this year. It is very difficult to correlate expenses of 365 days and load it on an 83-day season," Patil said.

Challenges Faced In Sugarcane Production

Several challenges impacted sugarcane cultivation this season. In Uttar Pradesh, the Co-0238 variety suffered from severe infestations of Red Rot disease and Top Shoot Borer pests. Meanwhile, premature flowering in Maharashtra and Karnataka stunted crop growth and lowered sugar yields.

NFCSF projected India’s total sugar output for 2024-25 to be around 25.9 million tonnes, significantly lower than the 31.9 million tonnes recorded in the previous season. 

Despite the current difficulties, NFCSF Managing Director Prakash Naiknaware expressed confidence in a stronger 2025-26 season. He cited improved rainfall in 2024 and favourable weather conditions as key factors expected to boost sugarcane availability and production levels. "If that happens, the availability of sugarcane and sugar production will be much better not only in the ensuing 2025-26 season but may also extend into 2026-27," Naiknaware said.