India’s Sugar Output Decline
India’s sugar production has seen a significant decline of 18% to 25.82 million tonnes till July, according to the National Federation of Cooperative Sugar Factories Ltd (NFCSFL). This drop is compared to the production levels of the previous year, highlighting challenges faced by major sugar-producing states.
State-wise Production
Uttar Pradesh, the largest sugar producer in India, witnessed a decrease in output from 10.36 million tonnes to 9.27 million tonnes till July this season. Similarly, Maharashtra, the second-largest producer, reported a sharper decline from 11 million tonnes to 8.09 million tonnes. Karnataka also saw a reduction from 5.16 million tonnes to 4.06 million tonnes.
Reasons for Decline
The decline in production can be attributed to various factors such as reduced sugarcane availability, unfavorable weather conditions, increased focus on ethanol production, and challenges posed by pests and diseases.
India marked a significant achievement by reaching a 20% ethanol blending target with petrol in 2025, five years ahead of schedule. This move aims to enhance energy security, reduce carbon emissions, and boost rural incomes.
Future Outlook
Looking ahead, NFCSFL projects a total sugar production of 35 million tonnes in the upcoming year. Positive factors like favorable monsoons, increased cane cultivation in Maharashtra and Karnataka, and government interventions in pricing are expected to contribute to this growth.
The federation emphasizes the need for policy interventions such as revised ethanol procurement prices, higher minimum selling prices for sugar, and facilitating sugar exports to manage excess inventory. These steps are crucial to sustain the viability of sugar mills, preserve rural employment, and support the country’s progress in the ethanol and cooperative development sectors.
Prakash Naiknavare, Managing Director of NFCSFL, highlighted the importance of such measures for the industry’s stability and India’s economic growth.
Source: NDTV Profit
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