India Set for Record Sugar Production Surge

India is predicted to achieve a record sugar production due to expanded cane cultivation and ample water supplies. This boost will allow India to resume sugar exports by 2025/26, which could stabilize global prices. Improved rainfall and farmers seeking better returns have driven this growth.

India is on the brink of a record-breaking sugar production year, thanks to favorable conditions that include expanded sugarcane cultivation and ample water supplies. Farmers and industry officials have reported that the country's ability to boost sugar production will enable it to resume exports by 2025/26, potentially stabilizing global sugar prices.

A significant factor in this rebound is the increased rainfall this year, which alleviated previous water scarcity that restricted cane yields. This change encouraged farmers across Maharashtra and Karnataka to increase sugarcane planting, as reflected by reservoirs holding more water than in previous years. Notably, the regions saw 39% more rain than average, spurring large-scale planting.

In addition to increased water availability, the shift by farmers seeking better returns from their crops has driven this sugarcane expansion. With sugarcane offering more stable and assured returns compared to crops like soybeans and cotton, farmers in areas such as Solapur have pivoted back to this water-intensive crop. As a result, India is poised to export between 3 million to 5 million tons of sugar next season, weather permitting.

(With inputs from agencies.)