Will India’s Sugar Season Conclude with 52 Lakh Tonnes of Buffer Stock?

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Will India’s Sugar Season Conclude with 52 Lakh Tonnes of Buffer Stock?

Synopsis

India's sugar industry is on track for a strong finish to the 2024-25 season, with projections indicating a closing buffer stock of 52 lakh tonnes. This ensures that domestic demand will be met while promising developments for the upcoming season are also on the horizon.

Key Takeaways

  • Projected net sugar production: 261 to 262 lakh tonnes.
  • Anticipated buffer stock: 52 lakh tonnes to meet domestic demand.
  • Sugar production for ethanol: 27 lakh tonnes diverted so far.
  • Positive outlook for 2025-26 season: Driven by favorable conditions.
  • Climate forecasts: Indicate a normal southwest monsoon.

New Delhi, May 16 (NationPress) India’s 2024–25 sugar season is expected to wrap up with a net sugar output of around 261 to 262 lakh tonnes, leaving a healthy buffer stock of 52 lakh tonnes to satisfy domestic needs, as reported by the Indian Sugar & Bio-energy Manufacturers Association (ISMA) on Friday.

The forecast includes 257.44 lakh tonnes of sugar that has been produced up to mid-May this season, along with an estimated 4 to 5 lakh tonnes expected from the special crushing season in Tamil Nadu and Karnataka, as detailed in the ISMA statement.

“The season began with an opening stock of 80 lakh tonnes. Given the anticipated domestic consumption of 280 lakh tonnes and export projections of up to 9 lakh tonnes, the expected closing stock will be around 52 to 53 lakh tonnes. This indicates a solid buffer, ensuring the nation possesses sufficient sugar to fulfill its domestic requirements,” ISMA highlighted.

Approximately 27 lakh tonnes of sugar has been allocated for ethanol production up to April 30, 2025, during the current season, with an additional 6 to 7 lakh tonnes expected to be diverted in the remaining season, ISMA added.

As of May 15, 2025, sugar production for the ongoing 2024-25 season has reached 257.44 lakh tonnes, with two sugar factories still operational across the nation. These facilities are located in Tamil Nadu, where the primary crushing season continues.

To boost production, several factories in South Karnataka and Tamil Nadu are anticipated to resume operations during the special crushing season, typically occurring from June/July through September.

Historically, the special season in Karnataka and Tamil Nadu contributes about 4 to 5 lakh tonnes of sugar for the current season.

The industry body also noted that the 2025–26 sugar season is looking promising, driven by several favorable developments in key sugar-producing regions.

In the southern states, particularly Maharashtra and Karnataka, sugarcane planting has shown remarkable growth, thanks to a beneficial southwest monsoon in 2024. With robust cane availability, the stage is set for an on-time start to the crushing season in October 2025.

In the northern region, including Uttar Pradesh, varietal replacement initiatives are anticipated to yield substantial benefits, resulting in higher cane yields and enhanced sugar recovery rates.

Adding to this optimistic outlook are climate forecasts from both the India Meteorological Department (IMD) and Skymet, which suggest a normal southwest monsoon in 2025.

This is advantageous for crop health and production, bolstering confidence in a robust and fruitful sugar season ahead, ISMA stated.

Point of View

The data provided by ISMA reflects a stable and promising outlook for India's sugar industry. The buffer stock not only indicates healthy production but also ensures that domestic demand is adequately met, which is crucial for economic stability. The future looks bright with favorable climatic conditions and improved agricultural practices.
NationPress
08/06/2025

Frequently Asked Questions

What is the expected sugar production for India's 2024-25 season?
India's 2024-25 sugar season is projected to witness a production of approximately 261 to 262 lakh tonnes.
How much buffer stock is expected at the end of the season?
A buffer stock of about 52 lakh tonnes is anticipated to remain at the end of the season.
What role does ethanol production play in sugar output?
Approximately 27 lakh tonnes of sugar have been diverted for ethanol production this season, highlighting its significance in the industry.
What factors contribute to the positive outlook for the 2025-26 sugar season?
Favorable climatic conditions and improved sugarcane planting practices in key states are contributing to a promising outlook for the upcoming season.
How is climate affecting sugar production in India?
Climate forecasts suggest a normal southwest monsoon in 2025, which is crucial for crop health and overall production.