ISMA Confirms Adequate Sugar Stocks and Positive Production Forecast
Click to start listening
Synopsis
The ISMA has confirmed that India's sugar stocks for the 2024-25 season are adequate, with a stable supply situation, and a positive outlook for production due to favorable weather conditions and government support.
Key Takeaways
- Sugar stocks in India are sufficient for the 2024-25 season.
- Projected closing stocks of 54 lakh tons by September 2025.
- Current production is around 238 lakh tons.
- Government allowed 10 lakh tons for export.
- Strong support for 5.5 crore farmers.
New Delhi, March 18 (NationPress) The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) announced on Tuesday that there is sufficient availability of sugar throughout the nation for the current 2024-25 sugar season, and the supply status remains stable.
With an anticipated closing stock of 54 lakh tons by September 30, 2025, ISMA forecasts that India's sugar reserves will adequately meet domestic requirements.
As of March 15, India has generated around 238 lakh tons of sugar, with approximately 200 sugar mills (38 percent of total mills) still operational. In Uttar Pradesh, about 75 percent of factories are active, and enhanced cane recovery is expected to prolong the crushing season until April. Additionally, despite lower cane yields in Maharashtra and Karnataka, operations in certain mills of Karnataka may resume in a special season during June/July 2025. Mills in Tamil Nadu are also anticipated to operate during this timeframe, contributing to sugar production, as per ISMA's statement.
The leading body in the sugar and bio-energy sector stated that following an extensive review by its executive committee on March 12, the overall sugar production estimate—after allocating 35 lakh tons for ethanol production—was revised to 264 lakh tons.
"Despite diminished output in specific areas, the association reassures that sugar availability will sufficiently satisfy domestic demand," the statement emphasized.
ISMA expressed optimism regarding the upcoming 2025-26 season, supported by favorable weather conditions and enhanced planting. The 2024 monsoon has improved cane planting, especially in Maharashtra and Karnataka, paving the way for an on-time commencement of the crushing season in October 2025.
In Uttar Pradesh and other northern regions, efforts to replace cane varieties are already yielding positive outcomes. This is expected to elevate yields and recovery rates, significantly contributing to robust sugar production next season.
ISMA also mentioned that the Indian government’s recent decision, announced on January 20, 2025, permitting the export of 10 lakh tons of sugar for the current season has provided significant advantages to the industry. This policy has helped stabilize domestic sugar stocks while ensuring financial stability for millers. The timely exports have enabled mills to make prompt cane payments, benefiting 5.5 crore farmers and their families.
As of mid-March 2025, nearly 80 percent of sugarcane payments for the current season have been processed, marking a considerable improvement over the 69 percent clearance by mid-January 2024. Additionally, 99.9 percent of sugarcane payments for the 2023-24 season have been finalized, ensuring enhanced financial stability for farmers, the statement noted.
The export allowance has also provided a financial cushion for the industry, which has been vital for stabilizing domestic prices and controlling inflation while allowing mills to manage operational costs more effectively. Furthermore, sugar exports are expected to contribute approximately Rs 4,500 crore to India’s foreign exchange reserves, bolstering the nation’s economy and improving the trade balance, the statement concluded.
