India's Sweet Surge: Record Sugar Output and Ethanol Diversion on the Rise

India's sugar production hits a record high, with 238 lakh tonnes produced. Ethanol diversion rises, enhancing industry dynamics. Monsoon forecasts indicate a promising 2025-26 season, supporting sugarcane agriculture across major states.

India has recorded an impressive sugar output of approximately 238 lakh tonnes, according to the Indian Sugar and Bio-energy Manufacturers Association (ISMA). As of April 15, around 200 mills remain in operation, accounting for 38% of the total mills in the country.

This sugar marketing season, running from October to September, sees an expected diversion of 35 lakh tonnes of sugar towards ethanol, compared to last year's 21.5 lakh tonnes. In Uttar Pradesh, 22 factories continue operations, with 16 located in West UP. Improved yields from plant cane have bolstered cane availability, potentially extending operations into late April 2025 and early May.

Maharashtra, a key sugarcane region, will see one Pune district mill in operation until the second week of May 2025. Further, some mills in South Karnataka plan to resume during the special June to September season. Recent favourable monsoons have enhanced sugarcane planting for the upcoming 2025-26 season, promising an on-schedule crushing start in October 2025. Forecasts from IMD and Skymet assure a normal 2025 monsoon, fostering a robust crop and production cycle.

(With inputs from agencies.)