Overview

• India's sugar production for 2024-25 has fallen 18% to 25.49 million tonnes, with ISMA reducing its final forecast to 254.97 LMT.
• The decline is attributed to lower yields in Maharashtra, Uttar Pradesh, and Karnataka, the top sugar-producing states.
• Approximately 3.5 million tonnes of sugar are being diverted for ethanol production, up from 2.15 million tonnes last year, reflecting government blending targets.
• Global market disruptions, including U.S. tariffs and a crude oil price slump, have impacted export competitiveness and ethanol demand.
• Industry stakeholders are hopeful for a rebound in 2025-26, supported by favorable southwest monsoon forecasts from IMD and Skymet.