Indian sugar output down 15.5% YoY as cane yields fall, says trade body

MUMBAI: Indian mills have produced 9.54 million metric tonnes of sugar since the season began on Oct 1, down 15.5 per cent year-on-year (YoY), a leading industry body said on Thursday, as cane yields fell in the three biggest producing states.

Lower output in the world’s second-largest sugar producer could eliminate the possibility of India allowing exports during the season ending in September 2025, supporting global sugar prices SBc1, LSUc1.

Sugar production in western state of Maharashtra fell 21.5 per cent from a year ago in the first three months of 2024/25 to 3 million tonnes , while output in neighbouring Karnataka fell 18.1 per cent to 2 million tonnes , Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said in a statement.

Production in the northern state of Uttar Pradesh fell 4.5 per cent from a year ago to 3.28 million tonnes, the ISMA said.By the end of December, 493 sugar mills in the country had started crushing operations, compared to 512 during the same period a year ago, it said.

Maharashtra, Karnataka, and Uttar Pradesh account for more than 80 per cent of the country’s total sugar production, with lower cane yields in these states prompting trade houses to reduce their output estimates for the 2024/25 season.

Cane yields in Maharashtra and Karnataka have fallen due to last year’s drought, while in Uttar Pradesh, red rot disease has reduced yields, said a senior industry official, who declined to be named.

“The production is lower than our expectations. Exports now look difficult in the current season,” the official said. The sugar industry seeks 2 million tonnes of exports, while the government says it may allow limited exports, if any surplus remains after ethanol needs are met.