Sugar Production Drops Amidst Delayed Factory Operations

Sugar output decreased by 17% to 61.39 lakh tonnes by mid-December due to a decline primarily in Maharashtra. The late start of factories in states like Karnataka and Maharashtra contributed to the reduced production, while the diversion of sugar to ethanol production has increased significantly.

Sugar production in India saw a sharp decline of 17% to 61.39 lakh tonnes by December 15 of the 2024-25 marketing year, according to ISMA. This slump is largely attributed to a reduction in output from Maharashtra, one of the major sugar-producing states.

This year, the sugar production also faced delays as factories in Karnataka started operations 7-12 days late, and Maharashtra began 15-20 days later than the previous year.

An additional factor influencing the lower sugar output is the increased diversion towards ethanol production, which is estimated to rise significantly to around 40 lakh tonnes compared to 21.5 lakh tonnes the previous year.

(With inputs from agencies.)