A Pinch of Sugar?

As crushing season comes to a close, there's concern that sugar production levels might not be all that sweet

- SANJEEB MUKHERJEE

In a few days, most sugar mills across India will conclude their sugarcane crushing operations for the current season (October 2024-September 2025). This year, industry watchers are keeping a close eye on final production numbers and their potential impact on domestic sugar availability in the coming months.

Typically, cane crushing begins around November and wraps up within a few months, but sugar marketing continues through September, making the entire cycle a single season.

This time, the supply situation has become tricky. Net sugar production—after accounting for diversion towards ethanol—is estimated to have declined by nearly 16-18 per cent from last year. The drop is primarily due to disease infestation in Uttar Pradesh (UP) and a prolonged drought in Maharashtra, the country's two largest cane-growing states.

The fall in production has revealed rifts within the industry, with one section urging the government to halt the one million tonnes (MT) of sugar exports allowed in January to ensure adequate supply during lean months. They argue that India's ethanol blending programme, which relies heavily on sugarcane-based molasses, could suffer if domestic supplies fall short.

However, the Indian Sugar and Bio-Energy Manufacturers Association (Isma), the country's leading sugar industry body, has dismissed fears of a supply crunch. It maintains that sufficient sugar will be available to meet both domestic consumption and ethanol requirements.