India's Sugar Production Drops as Crushing Delays
India's Sugar Production Sees a Slow Start
India's sugar industry began the 2024/25 season with a significant drop in production, reaching only 2.79 million metric tons by the end of November, down 35.4% from the same period last year. Mills in key states, Maharashtra and Karnataka, started operations later than usual, which has slowed the season’s early momentum, according to the National Federation of Cooperative Sugar Factories Ltd (NFCSF).Regional Setbacks in Sugar Production
Maharashtra, traditionally one of India’s largest sugar producers, reported a sharp production drop of 66%, producing only 460,000 tons in the first two months of the season. Karnataka's output also declined significantly, falling 36% to 700,000 tons.In contrast, Uttar Pradesh, the leading sugar-producing state in the north, has seen relatively steady production, with 1.29 million tons—just 1% lower than last year.
Fewer Mills in Operation This Season
By November’s close, only 381 sugar mills had started crushing operations compared to 433 mills during the same time last year. This reduction in active mills has further contributed to the slow start, with logistical issues and regional challenges delaying production in key areas.Despite these setbacks, officials expect crushing activities to pick up pace in the coming weeks.
Season’s Output Expectations and Export Impact
For the 2024/25 season, India is projected to produce 28 million metric tons of sugar, a decrease from the 31.9 million tons produced last year, as per NFCSF estimates. With reduced output, the government may hold back on allocating export quotas to prioritize domestic needs. This could affect global sugar markets, as India plays a critical role in international supply.Conclusion: Sugar Season Starts on a Challenging Note
India's sugar season is off to a slower-than-usual start, with delayed crushing operations and reduced output in key states creating early hurdles. As mills ramp up production in the weeks ahead, the industry’s ability to meet revised targets will remain under scrutiny. The decisions around exports and domestic supply will shape the market dynamics for the remainder of the season, both in India and globally.Click here to reach our trading platfrom CMBroker
