India's Sugar Availability To Comfortably Meet Domestic Demand: ISMA

Indian Sugar and Bio-Energy Manufacturers Association projected a positive industry outlook for the 2025–26 season, with sugar output in the first two months of October and November expected to exceed 43 lakh tonnes, ensuring a stable early-season supply.

The Indian sugar industry has produced around 238 lakh tonnes of sugar as of March 15, with around 200 mills or 38% of the total still operational. With a projected closing stock of 54 lakh tonnes by Sept. 30, India's sugar reserves will remain more than adequate to meet domestic demand, ISMA said in a release on Tuesday.

In Uttar Pradesh, nearly 75% of factories are running, with improved cane recovery expected to extend the crushing season till April. Although Maharashtra and Karnataka experienced lower cane yields, Karnataka mills are likely to resume during a special season in June/July. Mills in Tamil Nadu are also set to operate during this period, contributing to sugar production, according to the release.

On March 12, ISMA's executive committee revised the estimate for net sugar production, after diverting 35 lakh tonnes for ethanol production, to 264 lakh tonnes. "Despite reduced output in some regions, the association assures that sugar availability will comfortably meet domestic demand."

Despite an 11.5% increase in fair and remunerative price over the past two years from Rs 305 per quintal in 2022–23 to Rs 340 per quintal in 2024–25, the retail sugar prices have shown only a modest 5% rise during the same period.

However, commodities like rice, wheat, pulses and edible oils have experienced higher price growth of 7–42%.

ISMA remains optimistic about the upcoming 2025–26 season, backed by favourable weather conditions and improved planting.

The 2024 monsoon has enhanced cane planting, particularly in the states of Maharashtra and Karnataka, setting the stage for an on-time start of the crushing season in October 2025.

Uttar Pradesh and other northern states are expected to boost yields and recovery rates as efforts to replace cane varieties are already showing promising results, which contribute to robust sugar production next season.

ISMA said the government's decision to allow the export of 10 lakh tonnes of sugar for the current season significantly benefited the industry. The policy helped balance domestic sugar stocks while providing financial stability to millers. The timely exports have allowed mills to make prompt cane payments, benefiting 5.5 crore farmers and their families.

The crane-payment progress has accelerated. Approximately 80% of cane payments have been completed for the 2024–25 sugar season, an increase from the 69% paid from mid-January 2025 onwards. An impressive 99.9% of cane payments for the 2023–24 sugar season have been fulfilled to date.

Sugar exports are also expected to contribute approximately Rs 4,500 crore to India's foreign exchange reserves, strengthening the nation's economy and improving the trade balance.