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India set to close the sugar season leaving adequate surplus

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said, it is optimistic about the upcoming 2025-26 season (October-September), supported by favourable weather conditions and improved planting; India is set to have an adequate availability of sugar at home that would stand adequate to meet the demand. ISMA expressed its optimism after analyzing the export, ethanol and domestic demand. The closing stock of sugar at end of current season is likely to be 5.4 million tonne (mt), it said.
“The 2024 monsoon has enhanced cane planting, particularly in Maharashtra and Karnataka, setting the stage for an on-time start of the crushing season in October 2025,” ISMA said in a statement.
The trade sources noted that against the 12 lakh hectare (lh) normal area in Maharashtra, the planting was completed in about 7 lh until the end of January, about 1 lh higher from the year-ago period, adding that till date under consideration, Karnataka had a lead of only about 2,000 hectares from a year ago. The normal cane acreage (last five-year average) is about 12 lh in Maharashtra and 5.5 lh in Karnataka, ISMA noted.
According to ISMA, efforts to replace cane varieties in Uttar Pradesh and other northern states, are already showing promising results. “This is expected to boost yields and recovery rates, contributing to robust sugar production next season,” ISMA said.
In a letter to the Union Food Minister, ISMA mentioned that only 2.88 mt of sugar could be produced in the October-September period of the current season against 4.29 mt a year ago, down by 33 percent.
“However, the continuation of the government’s export policy is crucial for supporting farmers, strengthening the sugar industry, and ensuring economic stability. The industry remains well-positioned to contribute positively to the national economy while maintaining sufficient sugar stocks for the upcoming season,” ISMA noted.
Well in appreciation of the government’s recent decision, ISMA said, “The government’s decision (on January 20) to allow export of 1 mt of sugar for the 2024-25 season has significantly impacted the sugar industry,” adding that the timely approval by the government addressed concerns over ample sugar stocks and declining domestic prices and has provided much-needed relief to the sector.
“The export announcement not only helped balance sugar inventory but also offered financial stability to millers, enabling them to make prompt cane payments. This has directly benefited 5.5 crore farmers and their families, ensuring their livelihoods remain secure,” it said.
The ISMA said, the outstanding cane dues stood approximately Rs.9,000 crore as of December 2024, the highest in the past five sugar seasons. “The government’s export policy provided crucial financial relief, allowing mills to clear payments promptly. The export allowance provided a financial buffer for the sugar industry, stabilising domestic prices and controlling inflation. This stability enabled mills to manage operational costs efficiently and invest in expansions and improvements,” it said.
The data maintained by the Consumer Affairs Ministry showed that all-India average retail price of sugar was Rs.45.56/kg on March 18 against Rs.44.36 a year ago and the average wholesale rate was Rs.4,234/quintal against Rs.4,089.