India's sugar production declines by 14 pc, crushing stops in 186 sugar mills

In the current sugar season 2024-25, India's sugar production has declined by about 14 percent, and 186 sugar mills have stopped crushing. As a result, by the end of the season, total sugar production is estimated to decline to 265 lakh tonnes, approximately 17 percent less than last year's production of 319 lakh tonnes.

According to data released by the National Federation of Cooperative Sugar Factories (NFCSF) on February 28, India’s sugar production has reached 219 lakh tonnes, a 14% decline from 254 lakh tonnes produced during the same period last year. 

NFCSF reports that a total of 533 sugar mills participated in crushing, with 186 mills concluding operations by 28 February, compared to just 72 mills closing by this date last year. 

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has also reported sugar production of 219.78 lakh tonnes as of February 28. According to ISMA, crushing has stopped in 177 sugar mills, while 355 mills operating currently across the country. This season began with crushing in 532 sugar mills.

In Maharashtra and Karnataka, the closure rate of factories has increased in the last fortnight. According to ISMA, by February 28, 14 sugar mills in Uttar Pradesh, 86 in Maharashtra, and 55 in Karnataka had concluded the crushing operations.

Source: NFCSF

Production Declined

This season, sugar mills faced a shortage of sugarcane due to adverse weather conditions and crop diseases. As a result, by the end of February, about one-third of the sugar mills in the country had been closed. Consequently, NFCSF revised the estimated sugar production from 270 lakh tonnes to 265 lakh tonnes.  

So far, about 21 lakh tonnes of sugar has been diverted for ethanol production. The decline in sugar production may also prompt the government to reconsider targets of the ethanol blending program and sugar export policy.

Reduction in Recovery

Sugar recovery has also declined significantly this year. According to NFCSF, as of February 28, India's average sugar recovery dropped to 9.22 percent, compared to 9.95 percent last year. The sharpest decline has been recorded in Karnataka, where sugar recovery stands at 8.50 percent. Uttar Pradesh has reported a sugar recovery of 9.45 percent, while in Maharashtra, it stands at 9.35 percent. Last year, Uttar Pradesh recorded a sugar recovery of 10.30 percent, while in Maharashtra and Karnataka, it was 10 percent and 9.75 percent, respectively.

ISMA reports that the Sucrose percentage in plant cane across the state of Uttar Pradesh is improving and has reached a level comparable to the same period last season. As a result, it is expected to partially offset the lower sugar recovery experienced during the first half of the season, by the end of this season.

 (Source: ISMA, Note: Above sugar production figures are after diversion of sugar into ethanol)