NEW DELHI: Sugar manufacturing in the course of the present season (Oct-Sept) is estimated round 306 lakh tonnes, 11% decrease than the preliminary projection of 343 lakh tonnes for the 12 months by sugarcane-growing states, govt stated Friday. It additionally dismissed allegations of diversion of sugar for ethanol manufacturing hitting availability of the sweetener and spike in costs, stating that smaller quantity of sugar goes for ethanol manufacturing than was the case a couple of years in the past.The decrease output is anticipated to scale back the opening inventory of sugar on Oct 1 to round 33-34 lakh tonnes, down from 50 lakh tonnes a 12 months earlier – round two-thirds of final 12 months’s degree. Officers, nevertheless, stated the carry-over inventory could be enough to fulfill demand till contemporary sugar from the brand new crushing season begins reaching the market. The feedback got here a day after govt allowed duty-free import of 10 lakh tonnes of uncooked sugar to deal with provide considerations. Retail sugar costs rose sharply to Rs 58.2 per kg Friday, 20% greater than a month in the past and almost 26% greater than a 12 months in the past.
India’s sugar output seen 11% under estimate at 306 lakh tonnes; retail costs surge 20% in a month
The meals ministry stated the rise in sugar costs was as a result of a mixture of things, together with lower-than-expected home manufacturing, elevated demand forward of the festive season, weather-related injury to the crop, tightening international provides and hypothesis and hoarding by some sections.Ruling out the diversion of sugar for ethanol manufacturing impacting costs, it stated the share of diverted sugar has declined from round 12% in 2022-23 to round 9% in 2025-26. “Furthermore, almost three-fourths of the ethanol produced in India now comes from grains.” TOI has learnt that originally, states had estimated sugar manufacturing at 343 lakh tonne for the present season (Oct-Sept 2025-26), whereas business physique ISMA had estimated it to be round 348 lakh tonnes. Officers stated extra rain in Maharashtra final Oct, and Purple Rot and High Borer illness in sugarcane crop in UP and Maharashtra had impacted manufacturing. They added there have been preliminary indications of a fall in manufacturing in Jan, however mills had been nonetheless crushing. ” Export began solely in March and as quickly as there have been indications manufacturing could be much less, export was banned early Could,” stated a supply. Govt additionally stated that the tightening of sugar provides is a world phenomenon whereas citing that international sugar deficit for 2026-27 is estimated at round 33 lakh tonne. “Issues over climate situations have additional affected the worldwide outlook,” meals ministry stated.
