ISMA Affirms Sugar Industry Stability with 264 Lakh Tons of Production and Adequate Stocks

Amid the decline in sugar production, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the apex body of the country's sugar and bio-energy industry, has affirmed the stable and sufficient availability of sugar for the ongoing 2024-25 Sugar Season (SS), dispelling concerns about potential shortages and supply constraints. With a projected closing stock of 54 lakh tons by September 30, 2025, ISMA asserts that India’s sugar reserves will be more than adequate to meet domestic demand.

According to ISMA, As of March 15, 2025, India has produced approximately 238 lakh tons of sugar, with around 200 sugar mills (38% of total mills) still operational. In Uttar Pradesh, nearly 75% of factories remain active, with improved cane recovery expected to extend the crushing season until April. While Maharashtra and Karnataka have experienced lower cane yields, some mills in Karnataka are likely to resume operations during a special season in June/July 2025. Tamil Nadu mills are also set to contribute to production during this period.

Following a review by ISMA’s Executive Committee on March 12, 2025, the net sugar production estimate, after diverting 35 lakh tons for ethanol production, was revised to 264 lakh tons. Despite reduced output in some regions, ISMA assures that sugar availability will comfortably meet domestic demand.

Projected Sugar Balance for 2024-25 Season (in Lakh Tons)

Source: ISMA

FRP and Retail Price Trends

ISMA said that despite an 11.5% increase in the Fair and Remunerative Price (FRP) over the past two years—from ₹305 per quintal in 2022-23 to ₹340 per quintal in 2024-25—retail sugar prices have risen only modestly by 5% in the same period. In contrast, other essential commodities such as rice, wheat, pulses, and edible oils have seen price increases ranging from 7% to 42%.

Average Retail & Wholesale Prices of Sugar Over the Last Two Years

Outlook for the 2025-26 Sugar Season

ISMA remains optimistic about the upcoming 2025-26 season, supported by favourable weather conditions and improved cane planting. A strong 2024 monsoon has boosted planting, particularly in Maharashtra and Karnataka, setting the stage for an on-time start of the crushing season in October 2025. In Uttar Pradesh and other northern states, efforts to replace cane varieties are already yielding promising results, expected to enhance yields and recovery rates, thereby ensuring robust sugar production next season.

ISMA Supports the Sugar Export Policy

The Indian government’s recent decision, announced on January 20, 2025, to allow the export of 10 lakh tons of sugar for the current season has significantly benefited the industry, according to ISMA. This policy has helped balance domestic sugar stocks while ensuring financial stability for millers. The timely exports have enabled mills to make prompt cane payments, benefiting 5.5 crore farmers and their families.

As of mid-March 2025, nearly 80% of cane payments for the current season have been cleared, a substantial improvement from the 69% clearance by mid-January 2024. Additionally, 99.9% of cane payments for the 2023-24 season have been settled, ensuring better financial security for farmers.