New Delhi: Indian Sugar and Bio-Energy Manufacturers Association (ISMA), an association of the sugar and bio-energy industry in India, has announced the country’s sugar production for the fiscal year 2023-24. The confirmed figures suggest that the sugar production in India has reached approximately 314 lakh tonnes as of the end of April 2024. With an additional output of 5-6 lakh tonnes expected from mills in Karnataka and Tamil Nadu, the final net sugar production is estimated to be close to 320 lakh tonnes.
Overall, 516 factories have concluded their crushing operations nationwide against 460 closed last year, as of April end i.e., several operating factories were 16, which is 57 fewer than last year, 73 mills were operating the previous year on the corresponding date.
Some factories in Karnataka and Tamil Nadu will operate special season during June – September and are expected to collectively contribute around 5 – 6 lakh tonnes of sugar. Therefore, the final net sugar production (after diversion) for the season would be around 320 lakh tonnes, as estimated by ISMA in March 2024.
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Taking into account an opening stock of approximately 56 lakh tonnes as of October 1st, 2023, and a forecasted domestic consumption of 285 lakh tonnes for the season, ISMA projects a significantly higher closing stock of 91 lakh tonnes by September 30th, 2024. This estimate, amounting to 36 lakh tonnes above the normative stock of 55 lakh tonnes, can potentially lead to additional costs for the millers on account of idle inventory and carrying costs.
The sugar mills association also expects a moderate crushing season in 2024-25 due to several factors, including the early announcement of an increased Fair and Remunerative Price (FRP) for sugarcane, favourable pre-monsoon rainfall, and forecasts indicating an above-normal monsoon. These factors are further expected to lead to a higher stock in the coming year.
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In light of these projections, ISMA has urged the government to consider permitting the export of 20 lakh tonnes of sugar in the current season. ISMA believes that allowing exports will contribute to the smooth functioning of the sugar industry and foster economic stability.
Elaborating on this year’s sugar production estimates, Deepak Ballani, Director General of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), said, “We are pleased to report positive production figures for the sugar industry this year. The projected estimate of sugar production successfully highlights the collective efforts of our stakeholders and the industry’s resilience. The financial well-being of sugar mills and timely payments to farmers are paramount to the smooth functioning of the industry. Hence, we urge the government to consider permitting the export of 20 lakh tonnes of sugar in the current season.”
