Sugar output seen 9% lower at 337 lakh tonnes: ISMA

The Indian Sugar Mills Association (ISMA) has projected a 9% fall in gross sugar production for the current marketing year, which began this month. The association estimates that production will be around 337 lakh tonnes, down from 369 lakh tonnes in the previous year. However, ISMA asserts that the output will be sufficient to meet domestic demand.

Ethanol Production

The association has not yet estimated the diversion of sugar for ethanol production. In August, ISMA had estimated that 41 lakh tonnes of sugar would be diverted for ethanol production. The diversion of sugar towards ethanol would be estimated only after the declaration of feed stock-wise ethanol procurement price for the 2023-24 ethanol supply year starting in December.

Sugarcane Acreage

The total acreage under sugarcane in the country is estimated to be around 57 lakh hectares in 2023-24, the association said. This is a slight increase from the previous year's acreage of 56.5 lakh hectares.

Exports

India exported 61 lakh tonnes of sugar during the 2022-23 marketing year. This was down from a record 112 lakh tonnes in the previous year. The government has not yet allowed exports for this marketing year.

The decline in sugar production is expected to be driven by a number of factors, including a reduction in sugarcane acreage and adverse weather conditions. However, the government's focus on promoting ethanol production is expected to provide some support to the sugar industry.