COMMODITY
India's sugar production declines 18% till July in current season: NFCSFL
Jul-31-2025

The National Federation of Cooperative Sugar Factories (NFCSFL) has said that India's sugar production declined by 18.38 per cent to 25.82 million tonnes till July in the current season ending October, down from the year-ago period, as major producing states reported lower output. The cooperative body is eyeing total output to reach 26.11 million tonnes for the full season, well below the 31.9 million tonnes produced in 2023-24. Special crushing operations in Karnataka and Tamil Nadu, which run from June to September, are underway and likely to add some more tonnes to the total. Seven mills are operating in Karnataka compared to one last year, while Tamil Nadu has nine mills running versus 11 in the prior year. 

According to NFCSFL, Uttar Pradesh, India's largest sugar producer, saw output fall to 9.27 million tonnes till July from 10.36 million tonnes a year earlier. Maharashtra, the second-largest producer, reported a steeper decline in production to 8.09 million tonnes from 11 million tonnes, while Karnataka production dropped to 4.06 million tonnes from 5.16 million tonnes. The production decline was due to reduced sugarcane availability, adverse weather conditions, increased diversion to ethanol production, and pest and disease outbreaks.

Looking ahead, the NFCSFL has projected 35 million tonnes of sugar production in 2025-26, citing favourable monsoons, increased cane cultivation in Maharashtra and Karnataka, and a timely hike in the Fair and Remunerative Price by the government. The federation urged policy interventions, including revised ethanol procurement prices, increased minimum selling prices for sugar, and permission for sugar exports to manage excess inventory as per capita consumption declines due to growing health awareness. 

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