IMPORTANT JARGON

INDIA'S SUGAR STOCKS ARE AT COMFORTABLE LEVELS

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Recently, an important industry lobby for the sugar sector forecasted ample availability of sugar in the country despite some concerns over production in the current sugar season. The sugar marketing season runs from October to September. Sugar companies listed on the stock exchanges have rallied on hopes that more sugar would now be available for exports as well as for diversion to ethanol production. Both the verticals help the sector in terms of liquidity and better financial management.

Q. What Announcement Was Made By The Industry Lobby?

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA), an industry lobby for the sugar and bio-energy industry in India, has estimated a final sugar production of 26.4 million tonnes (after ethanol diversion) for the 2024-25 season. This figure is significantly lower than the 27.2 million tonnes it had estimated earlier. While lower production is a cause for concern, the industry body has added that production figures will ensure adequate sugar availability for domestic consumption.

Q. What Is The Math Behind Sugar Supplies In The Country?

The opening stock of sugar was 8 million tonnes (as of 1st Oct '24) when the new sugar season began. After factoring in the diversion of sugar for ethanol production, net sugar production is expected to be around 26.4 million tonnes in the ongoing sugar year. Domestic consumption is forecasted at around 28 million tonnes for the year, while exports are forecasted at 1 million tonnes. With these figures, ISMA projects a closing stock (which becomes the opening stock for the next season) of 5.4 million tonnes by 30th Sept ‘25. Sugar stocks lasting for a couple of months for domestic consumption is considered comfortable.

Q. What Is The Update On Sugarcane Crushing In The Country?