India’s sugar output dips 18% in 2024–25

India’s sugar production fell by 18.38% to 25.82 million tonnes by July in the current season ending in October, driven by lower output in key states like Uttar Pradesh, Maharashtra, and Karnataka, mainly due to adverse weather, pest infestations, and increased diversion for ethanol production.

According to the National Federation of Cooperative Sugar Factories Ltd (NFCSFL), India’s sugar production dropped by 18.38% to 25.82 million tonnes as of July in the ongoing 2024–25 season, compared to the same period last year. Total production for the full season is expected at 26.11 million tonnes, significantly lower than the 31.9 million tonnes recorded in 2023–24. The decline is largely attributed to adverse weather, reduced sugarcane availability, higher diversion of cane for ethanol production, and increased pest and disease attacks.

Key sugar-producing states reported notable declines as compared to last year: Uttar Pradesh’s output fell from 10.36 million tonnes to 9.27 million tonnes, Maharashtra saw a steeper drop from 11 million to 8.09 million tonnes, and Karnataka’s output  declined from 5.16 million to 4.06 million tonnes. Special crushing operations in Karnataka and Tamil Nadu (from June to September) are ongoing, with seven mills operating in Karnataka (up from one last year) and nine in Tamil Nadu (down from 11), expected to add modest volumes.

A major factor behind reduced sugar output is the country’s aggressive ethanol blending strategy. India achieved 20% ethanol blending with petrol in 2025—five years ahead of schedule—underscoring its commitment to energy security, emissions reduction, and rural economic growth. However, this has raised concerns about the sustainability of ethanol production from sugarcane, particularly during years of sugar surplus. Maharashtra has responded by approving the establishment of multi-feed distilleries in line with the National Bioenergy Policy, as the Ethanol Blending Programme now targets 30% blending by 2030.

Ex-mill sugar prices, which hovered around ₹3,900 per quintal after export quota announcements, have shown a decline since mid-May. However, rising festive demand is expected to stabilise prices, which is essential for mills undertaking off-season maintenance.

For 2025–26, NFCSFL forecasts a recovery in sugar production to 35 million tonnes, supported by good monsoons, increased cane cultivation in key states, and a timely hike in the Fair and Remunerative Price (FRP).