This season, sugar production in India saw a slight decrease of 1.2%, totaling 25.54 million metric tons.
This reduction stems mainly from lower yields in Maharashtra and Karnataka, as the Indian Sugar Mills Association (ISMA) noted on Monday.
In Maharashtra, sugar production fell to 9.09 million tons from 9.52 million, and Karnataka experienced an 8.3% reduction to 4.7 million tons.
However, Uttar Pradesh reported an 11.6% increase to 7.8 million tons, thanks to an early start to milling operations.
This production shift matters as India promotes sugar diversion to ethanol, aiming for a smoother biofuel program rollout.
The government has authorized mills to convert 1.7 million tons of sugar to ethanol.
This strategy is pivotal for India’s energy security and environmental goals, highlighting the interconnectedness of agricultural output and renewable energy initiatives.
Background
The reduction in Indian sugar production has wide-ranging implications.
India’s reduced sugar output impacts the global supply chain, affecting prices and availability worldwide due to its major producer status.
India’s decreased sugar output poses challenges to its economy, impacting millions of farmers and workers reliant on the industry.
Additionally, any change in sugar production directly influences domestic market prices, potentially affecting food security for millions within the country.