India’s sugar production plummets by 44% amid delayed crushing operations 

INDIA – India’s sugar production has fallen sharply by 44 percent to 7.10 lakh tonnes in the first six weeks of the 2024-25 season, compared to 12.70 lakh tonnes in the same period last year. 

The National Federation of Cooperative Sugar Factories Ltd. attributed the drop to fewer sugar mills beginning crushing operations this season. 

As of November 15, 2024, only 144 mills were operational nationwide, a significant decline from 264 mills during the same period last year.  

Despite the decrease in production, the average sugar recovery rate remained stable at 7.82 percent, compared to 7.81 percent in the previous season. 

Maharashtra, one of India’s leading sugar-producing states, has yet to commence crushing operations. In contrast, 103 mills were operational in Maharashtra during the same period last year. 

In Uttar Pradesh, the country’s top sugar-producing state, 85 mills have crushed 48.41 lakh tonnes of sugarcane, producing 3.80 lakh tonnes of sugar.  

Karnataka, the third-largest producer, has achieved 2.10 lakh tonnes of sugar output after processing 26.25 lakh tonnes of sugarcane. 

The industry body estimates that total sugar production for the 2024-25 season, which spans October to September, will decline to 280 lakh tonnes from 319 lakh tonnes recorded in the previous season. 

India, the world’s second-largest sugar producer after Brazil, extended its ban on sugar exports in September 2024 for the second consecutive year due to reduced sugarcane output. This marks the first export restriction in seven years. 

Meanwhile, the Committee of Ministers has deferred a proposal to raise the minimum selling price (MSP) of sugar, which has remained unchanged at Rs 31 (US$0.37)per kg since February 2019.  

The Indian Sugar Mills Association (ISMA) has urged the government to increase the MSP to Rs 39.14 (US$0.46) per kg, citing rising costs and financial pressures on millers. 

ISMA highlighted that the Fair and Remunerative Price (FRP) for sugarcane has risen five times during the same period, reaching Rs 340 (US$4.02) per quintal for the 2024-25 season. 

However, the current MSP does not adequately account for these increases, raising concerns about the financial viability of sugar mills. 

With sugar contributing over 85 percent of the industry’s revenue, ISMA emphasized the need for an updated MSP to cover cane purchase costs and sustain the sector’s economic health. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.