India’s sugar production has seen a decline of 15.6% in the first quarter of the current season, dropping to 95.40 lakh tonnes from 113.01 lakh tonnes in the previous year. This decline is attributed to a higher diversion of sugar towards ethanol production this year, as well as a delay in the start of sugar mills in Maharashtra and Karnataka.
According to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the crushing rate in major sugar-producing states like Uttar Pradesh, Maharashtra, and Karnataka has improved compared to last year. However, there were temporary disruptions in Uttar Pradesh due to delays in cane supply caused by adverse weather conditions.
Uttar Pradesh, the largest sugar producer in the country, saw a decrease in sugar production from 34.35 lakh tonnes to 32.80 lakh tonnes. Similarly, Maharashtra and Karnataka also witnessed a decline in sugar production. ISMA is expected to release its second advance estimates of sugar production by the end of January, with projections for the entire season set at 333 lakh tonnes.
On the consumption side, ISMA predicts that domestic sugar consumption will be lower this season at 280 lakh tonnes compared to 291 lakh tonnes in the previous season. The industry body also highlights that the domestic sales quota for the first four months of the year is lower than last year, which could impact overall consumption levels.
Overall, the sugar industry in India is facing challenges in production and consumption dynamics. It will be interesting to see how the sector adapts to these changes and navigates through the rest of the season.
