India’s sugar production fell by 15.6 per cent to 95.40 lakh tonnes (lt) in the first quarter of the ongoing season that started from October 1, 2024, against 113.01 lt in the year-ago period as there was a drop in output in a few States and higher diversion towards ethanol, according to industry body ISMA.

“The difference in net sugar production can be collectively attributed to higher sugar diversion towards ethanol this year (estimated as 40 lt for entire season against 21.5 lt in 2023-24 season) and late start of sugar mills in Maharashtra and Karnataka,” Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said in a statement.

There were 493 operating factories during October-December against 512 factories which operated on the corresponding period in 2023, it said releasing the fortnightly update.

Crushing rate better

Though crushing rate in the major States of Uttar Pradesh, Maharashtra and Karnataka is reportedly better than last year, there was some temporary disruption during last week of December in Uttar Pradesh due to rains-induced delay in cane supply from farmers’ field to mills.

Sugar production in Uttar Pradesh, the country’s largest producer, declined to 32.80 lt in the first quarter from 34.35 lt in the year-ago period, while in Maharashtra, the country’s second-largest producer, the output dipped to 30 lt from 38.20 lt year-ago. Sugar production in Karnataka too fell to 20.40 lt from 24.91 lt.

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ISMA said that it would release its second advance estimates of sugar production by January-end. In the first estimate, ISMA has projected sugar output in entire year will be 333 lt, including the quantity to be diverted for ethanol.

The industry body has projected domestic sugar consumption to be lower at 280 lt in the 2024-25 season from 291 lt in 2023-24.

“On the consumption side, it is noted that the domestic sales quota for the first four months of this year is 7 lt lower compared to the same period last year. Additionally, during the previous year, a higher sales quota was released due to increased demand during the general elections (April-June 2024),” it said, adding the average domestic consumption is likely to be about 23.5 lt per month.

The allocation of sugar for open market sales during the first four months (October-January) of the current sugar season is 92 lt. So, as per ISMA’s calculation, the likely release during February-September may be about 188 lt.