India's Sugar Stock Stable Despite Production Slump
India's sugar stock is projected to adequately meet domestic demand despite reduced production in 2024-25. NFCSF reported a sugar production drop due to lower recovery rates and reduced cane availability. However, favorable monsoon conditions and increased cane sowing are expected to boost the 2025-26 season.
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The National Federation of Cooperative Sugar Factories (NFCSF) announced that India's projected sugar closing stock will be between 4.8 and 5 million tonnes, sufficient to meet domestic demand in October-November 2025. This forecast comes despite a fall in production during the 2024-25 season.
According to NFCSF, sugar output witnessed an 18.38% decline, registering 25.74 million tonnes by mid-May 2024-25, down from 31.54 million tonnes year-over-year. The drop is attributed to lower sugar recovery rates, which decreased to 9.30% from 10.10%, and reduced availability of sugarcane for crushing.
Nevertheless, the NFCSF anticipates production recovery in the 2025-26 season, backed by favorable monsoon conditions and increased cane planting in Maharashtra and Karnataka. The federation has called on the government to increase the Minimum Selling Price of sugar, announce a sugar diversion target for ethanol, revise ethanol procurement prices, and continue with a progressive export policy.
(With inputs from agencies.)
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