Sugar Production Slumps by 44% in Early 2024-25 Season Due to Delayed Crushing Operations

India's sugar output has seen a sharp decline of 44% in the first six weeks of the 2024-25 season, with production falling to 7.10 lakh tonnes compared to 12.70 lakh tonnes during the same period last year, according to the National Federation of Cooperative Sugar Factories Ltd (NFCSFL). This slowdown is attributed to fewer mills commencing crushing operations.

As of November 15, only 144 sugar mills were operational, a significant drop from the 264 mills that were active in the previous year. Maharashtra, one of India’s top sugar-producing states, has yet to start crushing operations. In the same period last year, 103 mills were operational in the state.

In Karnataka, sugar production dropped from 53.75 lakh tonnes a year ago to 26.25 lakh tonnes this season, with only 40 mills in operation. Uttar Pradesh saw 85 operational mills during this period. The cooperative body estimates total sugar production for the 2024-25 season—from October to September—will decrease to 280 lakh tonnes, down from 319 lakh tonnes in the previous season.

Sugar recovery rates have remained stable at 7.82%, mirroring last year’s levels, the NFCSFL noted.

Conclusion

The slowdown in sugar production and fewer operational mills point to potential challenges in sugar supply. Those in the industry should monitor market conditions closely and consider strategies such as securing raw material supplies or adjusting pricing in response to reduced output.

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