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India's sugar production has fallen sharply by 18% this season, with major states like Uttar Pradesh, Maharashtra, and Karnataka seeing significant declines. As of April 15, total production stood at 254.25 lakh tonnes, down from last year’s figures. The country’s sugar mills are facing early closures, with only 37 mills still operating compared to 74 last year. This reduced output is expected to fall short of the domestic consumption of 285-290 lakh tonnes, marking a worrying shortfall. The decline in production is largely attributed to factors like lower sugarcane yield and factory closures. A government intervention may be needed to stabilize the sector.

Key Highlights

* Sugar production down 18.42% to 254.25 lakh tonnes.

* Uttar Pradesh, Maharashtra, and Karnataka see steep declines.

* 496 mills have shut down crushing operations compared to 461 last year.

* Net production is expected to fall 19% from last season's 319 lakh tonnes.

* Average sugar recovery down to 9.37% from 10.28% last year.

India’s sugar production has taken a significant hit this season, falling by 18.42% to 254.25 lakh tonnes as of mid-April. The drop in output is most pronounced in key sugar-producing states—Uttar Pradesh, Maharashtra, and Karnataka—which together account for over 80% of India’s sugar production. Uttar Pradesh’s sugar output has fallen from 101.7 lakh tonnes to 90.95 lakh tonnes, while Maharashtra’s production has plummeted by nearly 26%. Karnataka has also witnessed a reduction in both sugarcane crushed and recovery rate.

As a result, a total of 496 sugar mills have shut down crushing operations, compared to 461 mills last year, further intensifying the sector’s challenges. Sugar mills have been forced to close early, leading to fewer mills contributing to national production. This is expected to result in a shortfall of sugar output, with India’s estimated sugar consumption (285-290 lakh tonnes) surpassing the projected production of 259 lakh tonnes.

The country’s sugar recovery rate has also fallen to 9.37%, down from 10.28% in the previous year, indicating reduced efficiency in sugar extraction. The ongoing decline in sugar production calls for government intervention to provide much-needed support to the sector and stabilize prices.

Finally

With sugar production falling below consumption levels, government intervention will be essential to maintain market balance and support the sugar sector.

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