With only 37 sugar mills operating now compared to 74 a year ago, and production dropping to under 6 lakh tonnes in the last two weeks (from over 11 lakh tonnes in the previous fortnight), India’s sugar sector may require government support.

This season’s (October to September) total output is expected to fall below consumption levels for the first time in many years.

According to data compiled by the National Federation of Cooperative Sugar Factories (NFCSF), sugar production during October 1, 2024 and April 15, 2025 has dropped 18.42 per cent to 254.25 lakh tonnes (lt). The drop in production is even more in three major States — Uttar Pradesh, Maharashtra and Karnataka — which together contribute over 80 per cent in India’s annual sugar output.

The fall in sugar output was 17.85 per cent until March 31 when compared with a year ago, while deficit was 16.11 per cent until March 15, 13.64 per cent until February 28 and 12.06 per cent until February 15.

According to NFCSF, Uttar Pradesh has reported 937.63 lt of sugarcane crushed with a sugar output of 90.95 lt at 9.7 per cent recovery, against 959.43 lt of sugarcane crushed, 101.70 lt sugar produced with 10.6 per cent recovery year-ago.

So far, Maharashtra has seen closure of crushing in 199 factories and only 1 unit is in operation as of now. The State has reported 848.95 lt of sugarcane crushed (1,064.88 lt) with an average recovery of 9.50 per cent (10.25 per cent) and sugar production reaching 80.65 lt (109.15 lt).

Out of 79 factories in Karnataka that started operation this year, the crushing in all the factories has ended, and 475.29 lt of sugarcane has been crushed (527.18 lt), with an average recovery of 8.5 per cent (9.75 per cent), resulting in a net sugar production of 40.40 lt (51.40 lt).

As many as 496 mills closed crushing operation so far against 461 factories a year ago, the NFCSF data show.

This year’s net sugar production is expected to be 259 lt — 19 per cent lower than the 319 lt produced in the entire 2023-24 season (October-September), according to the association of cooperative sugar mills. India’s annual sugar consumption is estimated at 285-290 lt.

The latest update also shows that as much as 2713.28 lt of sugarcane has been crushed across the country till April 15, compared with 3066.20 lt in the year-ago period. The average sugar recovery (excluding diversion for production of ethanol) in the country has been 9.37 per cent, down from 10.28 per cent year-ago.

Published on April 16, 2025