Priyanka Tiwari
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sugar production has fallen by 16.13% to 23.71 million tonnes in the ongoing 2024-25 season, according to the National Federation of Cooperative Sugar Factories (NFCSF). The cooperative body has expressed concerns over discrepancies in sugar production estimates, which have created policy challenges for the government.
The 2024-25 sugarcane crushing season (October-September) is nearing its end with significantly lower output than initially projected. Earlier, sugar production was estimated at 33.3 million tonnes, but multiple downward revisions have resulted in a shortfall, NFCSF stated in a recent report.
Government Policy Impacted by Revised Estimates
The central government had initially approved sugar exports of 1 million tonnes in January 2025, based on early projections. However, with actual production falling below expectations, there is now a supply-demand imbalance, prompting reconsideration of trade policies.
NFCSF revealed that one industry section had submitted the 33.3 million tonnes estimate to the government, forming the basis for policy decisions. However, the current scenario indicates a sizable gap between estimated and actual output, leading to economic and logistical challenges.
Production Decline Across Major Sugarcane-Growing States
The downward trend in sugar output is reflected in India’s three largest sugar-producing states:
- Maharashtra: Production declined to 7.86 million tonnes (from 10.04 million tonnes last year).
- Uttar Pradesh: Output fell to 8.09 million tonnes (from 8.85 million tonnes last year).
- Karnataka: Sugar production dropped to 3.91 million tonnes (from 4.95 million tonnes last year).
Shortened Crushing Season Affects Maharashtra’s Industry
NFCSF President Harshvardhan Patil highlighted the shortened crushing period, particularly in Maharashtra, where the season lasted only 83 days instead of the economically viable 140-150 days.
"The sugar industry in Maharashtra is facing severe financial distress due to the shorter season. Managing expenses over 365 days while operating for only 83 days has created significant economic strain," Patil stated.
Agricultural Challenges Behind Sugar Output Decline
The 2024-25 season saw multiple agronomic challenges affecting sugarcane cultivation:
- Uttar Pradesh: The Co-0238 sugarcane variety suffered from Red Rot disease and Top Shoot Borer pests, impacting yields.
- Maharashtra & Karnataka: Premature flowering of standing cane led to stunted growth and lower sugar recovery rates.
Due to these factors, NFCSF has revised its total sugar production estimate for 2024-25 to 25.9 million tonnes, significantly lower than the 31.9 million tonnes recorded in the previous season.
Outlook for the 2025-26 Sugar Season
Despite the current production decline, NFCSF Managing Director Prakash Naiknaware remains optimistic about the 2025-26 season, citing increased sugarcane plantings due to favorable rainfall and positive weather forecasts.
"If these conditions persist, sugarcane availability and production will improve in 2025-26 and may even extend into 2026-27," Naiknaware added.
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