The sugar production in India experienced a decline of 2.48 per cent, totalling 22.36 million tonne until 15 February in the ongoing 2023-24 marketing year, according to the latest data released by the Indian Sugar Mills Association (ISMA).
Comparatively, during the same period in the previous year, sugar production stood at 22.93 million tonne. The sugar marketing year in India spans from October to September.
Further, ISMA’s second estimate projects a further decline in sugar output by 10 per cent, with an expected production of 33.05 million tonne in the current marketing year, as opposed to 36.62 million tonne in the preceding year.
The data from ISMA indicates that sugar production in key states including Maharashtra, Karnataka, Gujarat and Tamil Nadu remained lower during the ongoing marketing year until 15 February.
However, Uttar Pradesh, the country’s second-largest producer of sugar, witnessed an increase in production at 6.77 million tonne compared to 6.12 million tonne during the same period under review.
Additionally, Maharashtra which holds the position of the largest producing state of sugar in India, production dipped to 7.94 million tonne in February of the ongoing marketing year, down from 8.59 million tonnes in the year-ago period.
Similarly, Karnataka, the country’s third-largest producer, saw a decrease in production to 4.32 million tonne from 4.6 million tonne during the said period.
Gujarat and Tamil Nadu reported sugar outputs of 6,85,000 tonne and 4,50,000 tonne, respectively, so far in the ongoing marketing year.
ISMA noted that around 505 factories were operational till 15 February of the current marketing year, slightly up from 502 in the year-ago period. However, it mentioned that approximately 22 factories have ceased operations in Maharashtra and Karnataka.
The decline in sugar production poses various implications for both domestic and international markets, impacting prices and supply chains. ISMA’s projections suggest a challenging year ahead for the sugar industry, prompting stakeholders to strategise accordingly to mitigate potential challenges and sustain the sector’s growth.
