SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Sugar output in India likely to increase by 17.69% to 32.01 MT in 2020-21: ISMA

26 Jun 2020 Evaluate

The Indian Sugar Mills Association (ISMA) has said that sugar output in India, the world's second largest producer after Brazil, is expected to increase by 17.69% to 32.01 million tonnes (MT) during the season beginning October 2020 on likely higher availability of sugarcane for crushing. The country's sugar output has reached 27.02 MT so far in the ongoing 2019-20 season (October-September). About 1,50,000 tonnes of sugar production is expected by season-end, taking total output to 27.2 MT for this season.

On sugar demand and prices, the industry body said the offtake seems to have reached normal levels after the government relaxed lockdown rules. The ex-mill sugar prices, which had fallen to around Rs 31-31.50 per kg during the lockdown due to drop in domestic sales, have improved quite significantly to reach near the levels seen during pre-lockdown at around Rs 32-33.50 per kg. The estimates have been released without considering reduction of sugar because of diversion of B-heavy molasses and sugarcane juice into production of ethanol.

According to ISMA, sugar production in Uttar Pradesh -- the country's largest sugar producing state -- is expected to decline marginally to 12.30 MT in the 2020-21 season from 12.64 MT in the current season. This is because there is likely 1% fall in sugarcane area to 22.92 lakh hectares this year and also yields and sugar recovery increase would be marginal. But sugar production in Maharashtra, the country's second largest sugar producing state, is expected to increase to 10.13 MT in 2020-21 from 6.16 MT this season. Sugarcane area has gone up by about 43 per cent this year on account of good rains although 50,000 hectares cane area was completely lost due to floods in July- August 2019.

It added that normal southwest monsoon and above normal level of reservoirs is found to be beneficial for early growth of adsali and pre-seasonal crops. And overall yield per hectare is expected to go up in the state. Sugar production in Karnataka, the country's third largest sugar producing state, is expected to increase to 4.31 MT in 2020-21 as against 3.41 MT this season. ISMA has pegged sugar output to be 7,51,000 tonnes in Tamil Nadu, 10,81,000 tonnes in Gujarat and the remaining states at 3.43 MT in the forthcoming 2020-21 season.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×