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 has projected a significantly higher closing stock of 91 lakh tonnes by September 30th, 2024.
India’s sugar production reached approximately 314 lakh tonnes as of the end of April 2024, said the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). It further added that with 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.
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Overall, 516 factories have concluded their crushing operations nationwide against 460 closed last year, as of April end. This means the number of operating factories was 16, which is 57 lesser than last year. ISMA said that 73 mills were operating the previous year on the corresponding date.
Since 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, final net sugar production (after diversion) for the season would be around 320 lakh tonnes, as estimated by ISMA in March 2024.
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 has projected 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, stated ISMA.
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The association also said that a moderate crushing season is expected 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.
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. This would not only ensure sufficient stocks for domestic consumption and the Ethanol Blending Program (EBP) but also improve the financial liquidity of sugar mills and enable timely payments to farmers, it said.
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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, which will not only benefit the industry but also contribute to the welfare of cane farmers. We, at ISMA, remain committed to working towards the betterment of sugarcane farmers and the sustained growth of the sugar industry in India.”
