India's Sugar Output to Rise 18% in 2025-26

New Delhi, Jul 31 (PTI) India's sugar production is expected to rise 18 per cent to 34.90 million tonnes in the 2025-26 season starting in October, with a scope for exports of 2 million tonnes, the Indian Sugar and Bio-energy Manufacturers Association (ISMA) said on Thursday.

The estimated output includes the expected diversion of sugar towards ethanol production during the coming season.

Higher sugar production estimate for next season stems from likely 42 per cent jump in cane output to 13.26 million tonnes in 2024-25 from a year-ago, on likely better yields and marginal increase in acreage due to good monsoon, the industry body said.

For the ongoing 2024-25 season (October-September), sugar production is estimated to be 26.10 million tonnes, and the government has allowed exports of 1 million tonnes of the sweetener.

"With higher gross sugar output expected in the next season, there is scope for export of 2 million tonne in 2025-26 season," ISMA President Gautam Goel told reporters while releasing the first preliminary estimate.

There is also a room for diversion of 5 million tonnes for ethanol production compared with 3.5 million tonnes in the current season, he said.

After diversion for ethanol, 30 million tonnes of fresh sugar plus an opening stock of 5.2 million tonnes are seen to be available for meeting the domestic consumption, pegged at 28.5 million tonnes in the next season.

"Considering higher sugar production expected next season, the government should act timely and allow more sugar for diversion and for exports. If you don't act on time, it would cause problems for the sector," Goel noted.

The industry body called for "timely" permission for 2 million tonnes of sugar exports, higher diversion for ethanol, an increase in the minimum selling price of sugar as well as prices of ethanol made from B molasses and cane juice, he said.

In its first estimate, ISMA projected higher sugar output in top-producing states: Uttar Pradesh at 10.25 million tonnes, Maharashtra at 13.26 million tonnes, and Karnataka at 6.61 million tonnes for the 2025-26 season.

Cane production is estimated to increase by 42 per cent to 13.26 million tonnes in 2024-25 as against 9.33 million tonnes on likely better yield and marginal increase in acreage due to good monsoon.

On imports of raw sugar to meet demand in the first two months of next season, ISMA Director General Deepak Ballani said, "There is no need for import of raw sugar. We have adequate closing sugar stock of 5.2 million tonne."

ISMA said it releases preliminary sugar production estimates at this stage although it is still early to accurately predict crop production for the remainder of the season due to various factors especially with the southwest monsoon only halfway.

Currently, the crop is still in its early stages, and many factors will influence its eventual quality and yield. Nonetheless, ISMA has released first estimate data based on the current situation. Next estimate will be released in September.