Sugar production in the ongoing sugar season, starting October, has dropped by 17% to 61.39 lakh tonnes (lt) as of December 15 due to delayed factory operations in Maharashtra and Karnataka, according to ISMA. Lower sugarcane availability and reduced recovery rates have further weighed on production. NFCSF data also reflects a similar decline, projecting net production at 280 lt this season, 39 lt lower than last year. Despite an uptick in Uttar Pradesh's output, Maharashtra and Karnataka reported significant drops. Ethanol diversion is expected to rise sharply to 40 lt this year. Key decisions on sugar exports and price adjustments for sugar and ethanol are anticipated soon.
Key Highlights
# Sugar production fell 17% to 61.39 lt as of December 15.
# Delayed factory starts in Maharashtra and Karnataka impacted production.
# Ethanol diversion is projected to rise to 40 lt this season.
# ISMA expects net sugar production to be 280 lt, 39 lt lower than last year.
# NFCSF expects government decisions on sugar prices and exports soon.
Sugar production in India for the current season, beginning October, has witnessed a significant decline of 17%, reaching 61.39 lakh tonnes (lt) as of December 15, according to ISMA. This decrease is primarily due to the late commencement of operations in key sugar-producing states like Maharashtra and Karnataka, where mills started 15–20 days and 7–12 days later, respectively. Data from NFCSF further corroborates the fall, with net sugar production estimated to drop to 280 lt this season, 39 lt lower than last year's 319 lt.
On the performance front, sugar production in Uttar Pradesh showed resilience, increasing slightly to 23.04 lt from last year’s 22.11 lt. However, Maharashtra and Karnataka faced sharp declines. Maharashtra’s production fell from 24.45 lt to 16.78 lt, while Karnataka’s output dropped from 17.56 lt to 13.85 lt. The reduction in sugarcane availability and a lower recovery rate of 8.46%, compared to 8.72% last year, further hampered production.
Apart from production woes, sugar diversion towards ethanol is expected to rise significantly this year to 40 lt, compared to 21.5 lt last year. NFCSF President Harshvardhan Patil highlighted ongoing efforts to secure higher minimum selling prices for sugar and ethanol purchase rates. Key decisions on sugar exports and price revisions are likely by January-end, post a production review.
In other news, crushing operations are active in 472 sugar mills, which have crushed 720 lt of sugarcane so far. Despite climate conditions supporting the crop, lower sugarcane crushing by 131 lt this year underscores the production slowdown.
Finally
Sugar output is under pressure with a sharp 17% drop; government decisions on exports and price adjustments remain crucial for industry stability.