India’s sugar production to drop 19% in 2024-25 amid lower output in key states
INDIA – India’s sugar production is projected to decline by 19 percent to 25.8 million tonnes in the 2024-25 season, down from 31.9 million tonnes in the previous season, according to the All India Sugar Trade Association (AISTA).
This marks a downward revision of 0.72 million tonnes from AISTA’s first estimate of 26.52 million tonnes, primarily due to reduced output in Maharashtra, Tamil Nadu, and Gujarat.
Maharashtra, India’s largest sugar-producing state, is expected to see a sharp decline in output, producing 8 million tonnes, compared to 11 million tonnes last season.
Uttar Pradesh, the country’s second-largest sugar producer, is estimated to maintain its 9 million-tonne output, unchanged from the first forecast but lower than the 10.4 million tonnes recorded last season.
Karnataka’s sugar production is expected to reach 4.10 million tonnes, slightly higher than the initial estimate but still lower than the 5.3 million tonnes produced last season. AISTA noted that these estimates could vary by plus or minus 2 percent.
The diversion of sucrose for ethanol production has also been revised upward, with 3.8 million tonnes expected to be used, compared to an earlier estimate of 0.4 million tonnes.
With opening stocks of 7.98 million tonnes, total sugar availability is projected at 33.78 million tonnes, surpassing domestic consumption of 29 million tonnes.
Exports are forecasted at 1 million tonnes, while closing stocks are expected to be 3.78 million tonnes.
Meanwhile, Minister of State for Consumer Affairs, Food, and Public Distribution, Nimuben Jayantibhai Bambhaniya, has disclosed that sugar mills in India owe sugarcane farmers Rs 291 crore (US$33.37M) in unpaid dues over the past three years, with Rs 28 crore (US$3.2M) belonging to farmers in Punjab.
As of the 2024-25 sugar season (October 2024 to September 2025), total outstanding dues across 13 states stand at Rs 15,504 crore (US$1.78B), with Punjab farmers owed Rs 751 crore (US$86.13M).
Pending payments from previous seasons included Rs 82 crore (US$9.4M) in 2021-22, Rs 104 crore (US$11.9M)in 2022-23, and Rs 105 crore (US$12.04M) in 2023-24. No outstanding payments remain for Punjab farmers from the last two seasons, as reported by The Times of India.
The minister emphasized that the government has taken measures to reduce overdue payments, resulting in 99.9 percent of cane dues being cleared up to the 2023-24 season.
As of March 5, 2025, over 80 percent of the dues for the current season have already been settled.
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