Overview of Sugar Production Trends

Sugar production in India for the current year is projected to reach an impressive 330 lakh tonnes (3.96 million tonnes), according to recent estimates by global commodity trading company Wilmar. This forecast comes amid operational adjustments, with 462 mills currently active compared to 441 in the same period last year. This production level mirrors closely to that of the previous year, demonstrating resilience in India's sugar industry despite climatic challenges.

International Sugar Market Dynamics

Karim Salaman, the head of sugar analysis at Wilmar, highlighted the global sugar industry's landscape, noting the upcoming Brazilian sugar season's potential to match its record output. He anticipates a significant increase in sugar production capacity in India, estimating future outputs to range between 425 to 445 lakh tonnes (5.1 to 5.34 million tonnes) for the 2024/25 season. Salaman also forecasts substantial sugar production in Thailand, expected to be between 85 to 90 lakh tonnes (1.02 to 1.08 million tonnes), marking a notable increase from prior estimates.

Domestic Trends and Recovery Improvements

The sugar sector in India has seen a higher recovery rate than the previous season, with an average rate of 9.95%, compared to 9.76% last year. Maharashtra leads in sugar production with 90.90 lakh tonnes (1.09 million tonnes), followed by Uttar Pradesh with 78.95 lakh tonnes (0.95 million tonnes). However, Karnataka experienced a decrease, with production falling to 45.70 lakh tonnes (0.55 million tonnes) from 51.20 lakh tonnes (0.61 million tonnes) last season. Despite these variations, the overall production capacity and efficiency of India's sugar industry remain strong.

Despite varying regional outputs and environmental challenges, India's sugar industry is poised for substantial growth, reflecting resilience and strategic adaptation.