ISMA:India may have 5.4 mt of surplus sugar from current season

Claiming that domestic availability of sugar will be adequate to meet demand, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has said it is optimistic about the upcoming 2025-26 season (October-September), backed by favourable weather conditions and improved planting. It said after meeting export, ethanol and domestic demand, the closing stock of sugar at end of current season is likely to be 5.4 million tonnes (mt). “The 2024 monsoon has enhanced cane planting, particularly in Maharashtra and Karnataka, setting the stage for an on-time start of the crushing season in October 2025,” ISMA said in a statement.

Trade sources said against the 12 lakh hectare (lh) normal area in Maharashtra, the planting was completed in about 7 lh until the end of January, about 1 lh higher from the year-ago period. But, Karnataka had a lead of only about 2,000 hectares from a year ago, the sources said. The normal cane acreage (last five-year average) is about 12 lh in Maharashtra and 5.5 lh in Karnataka.

ISMA, the association of private sugar mills, said efforts to replace cane varieties in Uttar Pradesh and other northern States, are already showing promising results. “This is expected to boost yields and recovery rates, contributing to robust sugar production next season,” it said.

Sources said the main planting season in UP begins from February and until end of January there coverage was lower by 5,000 hectares compared with the year-ago period. The industry body, in a letter to the Union Food Minister, mentioned that only 2.88 mt of sugar could be produced in the October-September period of the current season against 4.29 mt a year ago, down by 33 per cent. However, it said the continuation of the government’s export policy is crucial for supporting farmers, strengthening the sugar industry, and ensuring economic stability. The industry remains well-positioned to contribute positively to the national economy while maintaining sufficient sugar stocks for the upcoming season.

“The government’s decision (on January 20) to allow export of 1 mt of sugar for the 2024-25 season has significantly impacted the sugar industry,” it said, adding the timely approval addressed concerns over ample sugar stocks and declining domestic prices, providing much-needed relief to the sector.

“The export announcement not only helped balance sugar inventory but also offered financial stability to millers, enabling them to make prompt cane payments. This has directly benefited 5.5 crore farmers and their families, ensuring their livelihoods remain secure,” it said. On the other hand, a trade body AISTA has earlier this week said that the country has exported 0.15 mt, including 69,527 tonnes in transit, of sugar as of March 11 out of the 1 mt allocation.

ISMA said the outstanding cane dues were approximately ₹9,000 crore as of December 2024, the highest in the past five sugar seasons. “The government’s export policy provided crucial financial relief, allowing mills to clear payments promptly...The export allowance provided a financial buffer for the sugar industry, stabilising domestic prices and controlling inflation. This stability enabled mills to manage operational costs efficiently and invest in expansions and improvements,” it said.

Data maintained by Consumer Affairs Ministry showed that all-India average retail price of sugar was ₹45.56/kg on March 18 against ₹44.36 a year ago and the average wholesale rate was ₹4,234/quintal against ₹4,089.