Sugar Production Dips Sharply Due to Unpredictable Weather; Price Hike Likely
Sugar production across India has taken a significant hit this year due to erratic weather patterns, including unseasonal rains and an early monsoon. These conditions have led to premature flowering of sugarcane crops and an increase in crop-related diseases, ultimately reducing both sugarcane yield and sugar recovery rates.
According to data released by the National Cooperative Sugar Mills Federation, sugar production has dropped from 315.40 lakh tonnes in the 2023–24 season to 257.40 lakh tonnes in the current season — a decline of 58 lakh tonnes. This sharp fall has been primarily attributed to a 25%–30% drop in sugar production in Maharashtra, one of India’s largest sugar-producing states.
Out of 533 sugar mills, the crushing season has concluded for 380 factories so far, with overall sugarcane crushing reduced to 276.75 lakh tonnes. The reduced availability of sugarcane and lower extraction rates are also pushing sugar prices upward, raising concerns about an imminent price hike for consumers.
Major States Affected
The sugar industry in leading states such as Maharashtra and Uttar Pradesh has been severely impacted. While only 240 out of 534 sugar mills closed early last year, this season has seen a far greater number ending operations ahead of schedule due to reduced cane availability and economic viability.
In comparison, sugar production stood at 92 lakh tonnes last year, while only 84 lakh tonnes have been produced this year so far. The situation has prompted the Department of Food and Public Distribution under the Central Government to consider increasing sugar prices for domestic consumption in the current financial year.
Other key sugarcane-producing states such as Karnataka have also recorded notable production declines, reinforcing the broader national trend.
No Immediate Shortage Expected
Despite the drop in production, industry experts have assured that there will be no immediate shortage of sugar in the domestic market until the next crushing season begins. The National Cooperative Sugar Mills Federation remains optimistic, citing a significant increase in sugarcane cultivation and the potential of new technologies to boost production in the coming years.
Outlook
As India navigates the challenges of climate variability and its impact on agriculture, the sugar industry stands at a critical juncture. A combination of adaptive farming techniques, government intervention, and modern technologies is expected to help stabilize the sector and ensure consistent supply in the long term.