ISMA Revises Sugar Production Estimate for 2024-2025 Season
The Indian sugar industry is witnessing a significant shift in its production estimates for the upcoming 2024-2025 season. The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has revised its production estimate downwards, citing the diversion of a substantial quantity of sugar for ethanol production. In its revised estimates, ISMA now expects a total sugar production of 264 lakh tonnes for the 2024-2025 season, down from its earlier estimate of 272.5 lakh tonnes.
This revision comes on the back of a significant increase in ethanol production in the country. Ethanol is a key component in the production of biofuels, and its demand has been on the rise in recent years. As a result, sugar mills have been diverting a substantial quantity of sugar to produce ethanol, leading to a reduction in their sugar production.
In a statement, ISMA attributed the revision to the diversion of 35 lakh tonnes of sugar for ethanol production. This diversion has resulted in a reduction of 8.25 lakh tonnes in the estimated sugar production for the 2024-2025 season.
The revised estimates also take into account the current production figures for the 2023-2024 season, which have been higher than expected. As of March 10, India’s total sugar production has reached 233.1 lakh tonnes, with Uttar Pradesh (UP) and Maharashtra leading the output. These two states have been the largest producers of sugar in the country, accounting for over 50% of the total sugar production.
The revision in the sugar production estimate is significant, as it has implications for the sugar industry, farmers, and the government. The sugar industry is a significant contributor to the country’s economy, and any changes in its production estimates can have a ripple effect on the economy.
One of the key concerns for the sugar industry is the cane payments to farmers. The revision in the sugar production estimate could lead to a delay in cane payments to farmers, which could have a negative impact on their finances. However, according to recent reports, cane payments have accelerated, with 80% of the payments completed for the current season.
The revision in the sugar production estimate also has implications for the government’s sugar policy. The government has been trying to promote the use of ethanol as a biofuel to reduce the country’s dependence on fossil fuels. The diversion of sugar for ethanol production could lead to a reduction in the country’s sugar imports, which could have a positive impact on the trade balance.
In conclusion, the revision in the sugar production estimate by ISMA is significant, and it has implications for the sugar industry, farmers, and the government. The diversion of sugar for ethanol production is a key factor behind the revision, and it is expected to continue in the coming years. The sugar industry is a significant contributor to the country’s economy, and any changes in its production estimates can have a ripple effect on the economy.
