Lower Cane Yields Cut Sugar Output, Affecting 80% of India's Production

Maharashtra, Karnataka, and Uttar Pradesh contribute over 80% of the nation’s overall sugar output, and the reduced cane yields in these regions are leading trading companies to lower their production forecasts for the 2024/25 season. Sugarcane production in India is falling as a result of last year's drought and this year's heavy rains, which may cause the nation's sugar output to dip below consumption rates for the first time in eight years, farmers and industry representatives noted on Monday.

Output from the world's second-largest sugar producer that is below expectations might prevent India from permitting exports in the current season, which concludes in September 2025, thereby bolstering global sugar prices.

The output might drop to approximately 27 million metric tons from last year’s 32 million tons, and it would be below the yearly consumption of over 29 million tons, stated the head of a global trading firm in India, who wished to remain anonymous.

"During the summer months, the cane crop faced prolonged stress due to the lack of water," B.B. Thombare, president of the West Indian Sugar Mills Association told sources.

"When the monsoon season began, there was excessive rainfall and limited sunshine, which also adversely affected the crop's growth."

The adverse weather curtailed cane yields by 10 to 15 tons per hectare, Thombare said. The western state of Maharashtra and neighbouring Karnataka, which together produce nearly half of India's sugar, received lower-than-average rainfall in 2023, bringing down reservoir levels.