India’s sugar consumption for the 2024-25 sugar year (SY) is projected to be 28 million tonnes, marking a decrease of 1.5 million tonnes since last year. The Indian sugar and Bio-Energy Manufacturers Association (ISMA) credits the decline to reduced demand, as no specific events like the 2024 General Elections since they were held in the summer months.
In the first four months of SY 2024-25, the domestic sales quota was reduced by 0.7 million tonnes compared to the same period last year. ISMA explained that during SY 2023-24, the sales quota was higher to meet the heightened demand driven by election activities.
ISMA projects average domestic monthly sugar consumption to hover around 2.35 million tonnes over the remaining eight months, culminating in a total annual consumption of 28 million tonnes for the sugar season.
On the production front, India witnessed a 16% drop in sugar output in the first quarter of the 2024-25 marketing year, totaling 9.5 million tonnes, compared to 11.3 million tonnes during the same period last year. The decline is primarily attributed to lower yields in Maharashtra, one of the country’s largest sugar-producing states.
Despite setbacks in Maharashtra and Karnataka, the crushing rates in Uttar Pradesh, Maharashtra, and Karnataka remained robust compared to the previous year. However, temporary disruptions in cane supply due to rains impacted operations in Uttar Pradesh in late December.
The positive outlook comes from the efficient production processes and the growing emphasis on ethanol production, which is diversifying the industry’s revenue streams. As the world’s largest consumer and producer of sugar, India’s efforts to stabilize the sector highlight its resilience and contribution to the global sugar economy.
