ISMA reduced sugar production estimate to 264 lakh tonnes

ISMA, an organization of private sugar mills, has reduced sugar production estimate to 264 lakh tonnes in the current crushing season (2024-25). Earlier on January 31, 2025, ISMA had released an estimate of 272.69 lakh tonnes of sugar production. According to ISMA, till March 10, 233.09 lakh tonnes of sugar has been produced in the country and currently 228 sugar mills are crushing across the country.

In its press release, ISMA has said that  and estimated 35 lakh tonnes of sugar will be diveted for ethanol in the current year. In the current season, crushing had started in 532 sugar mills across the country, out of which 304 sugar mills have been closed.
ISMA says that there is improvement in sugar recovery in the plant sugarcane crop in Uttar Pradesh, although crushing will end by the end of March in most of the sugar mills in eastern and central Uttar Pradesh.
Due to low yield of sugarcane in Maharashtra and Karnataka, its availability has been low, although some sugar mills in Karnataka may resume crushing in the special season in June-July, 2025. Under the current circumstances, after the diversion of 35 lakh tonnes of sugar for ethanol, the sugar production can be 264 lakh tonnes. According to ISMA, 78.80 lakh tonnes of sugar has been produced in Uttar Pradesh till March 10 and it is estimated to reach 92.5 lakh tonnes. So far, 78.10 lakh tonnes of sugar has been produced in Maharashtra and 81 lakh tonnes of sugar is estimated to be produced there. At the same time, 38.94 lakh tonnes of sugar has been produced in Karnataka and it is estimated to reach 41.5 lakh tonnes. In other states, 37.25 lakh tonnes of sugar has been produced so far and it is estimated to reach 49 lakh tonnes.

At the beginning of the current season, on October 1, 2024, there was a sugar stock of 80 lakh tonnes. With 264 lakh tonnes of sugar being produced in the current season, the total availability of sugar this year will be 344 lakh tonnes. After domestic consumption of 280 lakh tonnes and export of 10 lakh tonnes of sugar, there will be a closing stock of 54 lakh tonnes at the end of the season. ISMA has reduced the sugar production estimate twice. A Sugar Trade Organization has released an estimate of production being at 258 lakh tonnes and the closing stock  at the end of current season coming down to 38 lakh tonnes. In the current situation, if the production remains around 260 lakh tonnes, then there may be a crisis of sugar availability because while industry sources are saying that 275 lakh tonnes of sugar in the closing stock is usable, this year both Dussehra and Diwali festivals are in October and it is not possible for the sugar of the new season to be available in the market before November. Therefore, if the upward trend in sugar prices continues, then the government will have to face the challenge of controlling prices.