Sugarcane Production Dips 14% in SSY25, Raising Market Concerns

Sugarcane production in the nation dropped by 14 percent in the sugar season year (SSY) 2025 relative to the previous year, potentially causing the estimates for SSY25 to be missed, says a report by Centrum.

The report indicated that for this season, industry analysts anticipate India's overall sugar output to be approximately 27 MMT, which is below the previous market prediction of 28 MMT. This would indicate a notable decrease from the 31.8 MMT generated in SSY24.

It said, "There is nearly a 14 per cent decrease in sugar production compared to the previous year, which can be attributed to higher diversion towards ethanol and lower cane availability." The report emphasized that the year-on-year (YoY) decline is roughly 2 million metric tonnes (MMT), with overall production standing at 13.1 MMT, a decrease from 15.1 MMT in the prior season.

It was also mentioned that Maharashtra (MH), a leading sugar-producing state, has experienced a significant 19 per cent year-on-year decrease in production this season, mainly attributed to a 13 per cent year-on-year reduction in cane availability over the last two weeks and a 17 per cent decline for the entire season.

In contrast, Uttar Pradesh (UP) has seen a modest decline of 7 per cent in sugar production, despite marginally increased crushing, suggesting a larger portion of sugarcane is being redirected to ethanol.