According to the food ministry, 33 million tons (MT) of sugar will be produced during the 2024–25 sugar season (October–September). This amount would be sufficient to meet 29 MT of domestic consumption each year as well as the 4.5 MT needed to produce ethanol.
5.76 million hectares of sugarcane were sown during the current Kharif season, which was more than the previous year. For many years, sugar inflation has been in the single digits. Sugar production for 2023–2024 is predicted to be 32 MT, which is less than the previous season’s 32.8 MT.
According to officials, carry-forward stock with mills at the start of this year’s sugar season on October 1 was 7.9 MT, compared to 6 MT of sweetener at the start of the season last year. However, a private assessment suggests that 5 MT of sugar might be diverted for the manufacturing of ethanol.
The food ministry reversed last year’s restriction in August, permitting the use of sugarcane juice and sugar syrup for ethanol production in the 2024–25 ethanol supply year (ESY/November–October).
To guarantee sufficient sugar supply for domestic consumption and control prices, the government banned the use of sugarcane juice or sugar syrup for ethanol manufacture in the 2023–24 ESY in December 2023. After Brazil, India is the world’s second-largest producer of sugar.
The government believes that the ethanol blending scheme is essential to fulfilling its green energy pledges and enhancing sugar mills’ financial stability. The government is unlikely to permit sugar exports during this season, though. In the 2022–2023 season, India exported 6 MT of sugar; after that, the government has not set aside any quota for sugar exports.
