India's Sugar Closing Stock Sufficient for Late-2025 Demand Despite Output Drop: NFCSF

India's sugar closing stock is projected at 4.8-5 million tonne, enough to meet domestic demand in October-November 2025, despite falling production in the current 2024-25 season, the National Federation of Cooperative Sugar Factories (NFCSF) said on Thursday.

Sugar season runs from October to September.

Sugar output declined 18.38 per cent to 25.74 million tonne till May 15 of the 2024-25 season, compared with 31.54 million tonne in the year-ago period, the cooperative body said.

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 tonne from 312.26 million tonne in the same period.

NFCSF projects overall 2024-25 season sugar production at 26.11 million tonne, down from 31.9 million tonne in the previous season.

"The closing stock at the end of the season is projected to be around 4.8-5 million tonne, which is sufficient to meet domestic demand in October and November 2025," the federation said in a statement.

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 tonne sugar diversion target for ethanol in 2025-26, revise ethanol procurement prices, and maintain a progressive export policy.