India's Sugar Woes: Droughts, Rains, and Production Slump

India's sugarcane production is declining due to adverse weather conditions, potentially lowering sugar output below consumption levels for the first time in eight years. This situation may halt sugar exports. Key states like Maharashtra and Karnataka are heavily impacted, prompting reduced production estimates for the 2024/25 season.

India faces a significant decline in sugarcane yields as last year's drought followed by excessive rains this year threaten sugar production levels, industry officials reported on Monday. This could result in production falling below consumption for the first time in eight years.

India, the world's second-largest sugar producer, may not be able to allow exports this year, potentially supporting global sugar prices. Crucial contributors to the sugar industry, Maharashtra, Karnataka, and Uttar Pradesh, register considerably lower yields, causing trade houses to adjust output forecasts for the 2024/25 season.

The expected production could slump to around 27 million metric tons, down from last year's 32 million tons, while the annual consumption exceeds 29 million tons. Weather adversities reduced yields by 10 to 15 tons per hectare, and experts predict significant challenges unless conditions improve.

(With inputs from agencies.)