With an adequate buffer and an increase in production prospects in Uttar Pradesh, Maharashtra and Karnataka, there will be no shortage of sugar in the October-September season (2023-24).
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The upcoming October-September season (2023-24) will not see a shortage of sugar in the domestic market. According to the Indian Sugar Mills Association (ISMA), on account of a sufficient buffer and improved output prospects in Uttar Pradesh, Maharashtra, and Karnataka, there will not be any shortage of sugar throughout the upcoming season (October-September).
Mr. Aditya Jhunjhunwala, President of ISMA informed that at the outset of the next season (2023-24), there will be a carryover stock of 5.5 million tonnes (MT) on October 1. With the earlier projected sugar output of 31.7 MT (excluding the 4.4 MT that is diverted to ethanol), against the annual demand of about 28 MT, the aggregate stocks would be enough to meet the domestic demand for sugar.
He noted that with recent rains after a dry August, sugar production is expected to get a boost and that there still exists a possibility of exports of 2-3 MT in the next season after the assessment of the output.
Overall sugarcane acreage in the current kharif season was about 5.9 million hectares (MH), up by 7.6% from the previous season.
ISMA has meanwhile appealed to the government to develop a long-term ethanol pricing policy that would take into account a fair and lucrative price as well as a minimum sales price, as these policies are expected to encourage investment in expanding ethanol production capacity. According to ISMA, an investment of Rs 17,500 crore is required to increase ethanol production from its current level of 5,500 million litres to 12,000 million litres to meet the 20% blending target by the end of FY26.
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