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Sugar Stocks Sweeten as Output Forecast Sours
Business Standard
|March 19, 2025
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Shares of sugar companies soared by as much as 20 per cent on the BSE during Tuesday's trading, driven by expectations of a significant drop in sugar production across the top three states—Maharashtra, Karnataka, and Uttar Pradesh. According to a PTI report, India's sugar production has fallen by 16.1 per cent to 23.71 million tonnes so far in the 2024-25 season.
The National Federation of Cooperative Sugar Factories (NFCSF) has revised its sugar production estimate for the current season to 25.9 million tonnes, a sharp decline from the 31.9 million tonnes produced in the previous season.
This forecast deviates notably from the Indian Sugar Mills Association's (ISMA's) initial projection of 27.2 million tonnes.
The NFCSF data indicates a significant dip in Maharashtra's output, which fell to 7.9 million tonnes by March 15, down from 10.04 million tonnes the previous year.
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