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India's sugar closing stock enough to meet demand in October-November 2025: NFCSF

16 May 2025 Evaluate

The National Federation of Cooperative Sugar Factories (NFCSF) has said that India's sugar closing stock is projected at 4.8-5 million tonnes, enough to meet domestic demand in October-November 2025, despite falling production in the current 2024-25 season. Sugar season runs from October to September. Sugar output declined 18.38 per cent to 25.74 million tonnes till May 15 of the 2024-25 season, compared with 31.54 million tonnes in the year-ago period.

The production drop stems from lower sugar recovery rates, which fell to 9.30 per cent from 10.10 per cent, and reduced cane availability for crushing. Total cane crushed decreased to 276.77 million tonnes from 312.26 million tonnes in the same period. NFCSF projects overall 2024-25 season sugar production at 26.11 million tonnes, down from 31.9 million tonnes in the previous season. Production is expected to rebound in the 2025-26 season due to favourable monsoon conditions and increased cane sowing in Maharashtra and Karnataka.

Ex-mill sugar prices remain stable at Rs 3,880-3,920 per quintal, supported by lower production and the government's decision to permit exports. NFCSF urged the government to raise the Minimum Selling Price of sugar to offset increased production costs, announce a 5 million tonnes sugar diversion target for ethanol in 2025-26, revise ethanol procurement prices, and maintain a progressive export policy.

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