India's Sugar Output Falls 18% To 25.82 Mn Tonnes Till July of this Season: NFCSFL

India's sugar production declined 18.38% to 25.82 million tonnes till July in the current season ending October, down from the year-ago period, as major producing states reported lower output, the National Federation of Cooperative Sugar Factories Ltd said on Wednesday.

The cooperative body expects total output to reach 26.11 million tonnes for the full season, well below the 31.9 million tonnes produced in 2023-24.

Special crushing operations in Karnataka and Tamil Nadu, which run from June to September, are underway and expected to add some more tonnes to the total.

Seven mills are operating in Karnataka compared to one last year, while Tamil Nadu has nine mills running versus 11 in the prior year.

According to NFCSFL, Uttar Pradesh, India's largest sugar producer, saw output fall to 9.27 million tonnes till July from 10.36 million tonnes a year earlier.

Maharashtra, the second-largest producer, reported a steeper decline to 8.09 million tonnes from 11 million tonnes, while Karnataka dropped to 4.06 million tonnes from 5.16 million tonnes.

The production decline was due to reduced sugarcane availability, adverse weather conditions, increased diversion to ethanol production, and pest and disease outbreaks.

In a significant development, India achieved 20 % ethanol blending with petrol in 2025, five years ahead of its original 2030 target. The milestone underscores the country's push to enhance energy security and reduce carbon emissions while boosting rural incomes.

"This shift indicates greater feedstock diversification but also raises important questions about the long-term sustainability of ethanol production from sugarcane, particularly in years of surplus inventory," the NFCSFL said.

Maharashtra approved the establishment of multi-feed distilleries across the state on July 23, aligning with the National Bioenergy Policy and India's Ethanol Blending Programme, which now targets 30% blending by 2030.

Ex-mill sugar prices have hovered around Rs 3,900 per quintal following export quota announcements but showed a downward trend since mid-May.

Rising festive season demand is expected to stabilise prices, crucial for mills conducting off-season maintenance, the Federation said.

Looking ahead, the NFCSFL projects 35 million tonnes of sugar production in 2025-26, citing favourable monsoons, increased cane cultivation in Maharashtra and Karnataka, and a timely hike in the Fair and Remunerative Price by the government.

The federation urged policy interventions, including revised ethanol procurement prices, increased minimum selling prices for sugar, and permission for sugar exports to manage excess inventory as per capita consumption declines due to growing health awareness.

"Such measures are essential to safeguard the viability of sugar mills, maintain rural employment, and ensure India continues its forward momentum on both the ethanol and cooperative development fronts," said Prakash Naiknavare, Managing Director of NFCSFL.