Sugar production likely to be on a downslide in 2023-24: Industry

Estimates of sugar production are at 316 lakh tonnes this year.

The overall sugar production in 2023-24 is expected to witness a downslide owing to lower rainfall, which has led to lesser sugarcane plantation this year, said the industry.

“The overall sugar production in this year is expected to be at a downslide than last year because of less rainfall which has led to lesser sugarcane plantations. However, the lower sugar production this year is not worrisome as the difference may not be huge as compared to last year, as the crushing season is ongoing and still not over,” All India Sugar Trade Association (AISTA) Chairman Praful Vithalani told Moneycontrol. AISTA estimates sugar production at 316 lakh tonnes this year as compared to 329 lakh tonnes in 2022-23.

Till February 15 in the current sugar season, the production has reached 223.68 lakh tons, against 229.37 lakh tons produced last year during the corresponding period, according to Indian Sugar Mills Association (ISMA).
According to ISMA, sugar production in Maharashtra, Karnataka, Gujarat, and Tamil Nadu remained lower till February 15 of the ongoing marketing year.

The production in Maharasthra -- the country's largest producing state of sugar -- was down at 7.94 million tonnes till February 15 of this marketing year, compared with 8.59 million tonnes in the year-ago period.

Similarly, production in Karnataka -- the country's third largest producer -- was down at 4.32 million tonnes from 4.6 million tonnes in the said period. Sugar output reached 6,85,000 tonnes in Gujarat and 4,50,000 tonnes in Tamil Nadu till February 15 in this marketing year.

Closing of sugar mills in current season

The sugar crushing season usually begins from November 15, which lasts till March 30. The number of operating sugar mills are at 505 this year against 502 mills that operated last year.

“In the current season, the Karnataka sugar mills are likely to close earlier by February end because they started the crushing earlier in October. Meanwhile, Maharashtra sugar factories are likely to close by April 10 as they started the crushing in November,” Vithalani said. Closing of the sugar mills after the crushing season is a regular feature.