India’s sugar stockpile set to shrink as output estimate falls: Govt
India's sugar production estimate has fallen significantly, impacting opening stocks for the new season. This lower output is expected to meet domestic demand until fresh supplies arrive. Retail sugar prices have risen sharply due to several contributing factors. The government has allowed duty-free imports of raw sugar to address availability concerns. Diversion of sugar for ethanol production…
India's sugar production for the current season is now expected to be around 306 lakh tonnes, a decrease of 11% compared to the initial estimate of 343 lakh tonnes made by sugarcane-producing states. The government dismissed claims that ethanol production was a factor in the reduced domestic supply and rising prices, noting that the amount of sugar diverted for ethanol has actually declined in recent years.
India's opening sugar stockpile on October 1 is forecast to drop to 33-34 lakh tonnes, down from 50 lakh tonnes the previous year. Officials said the carry-over inventory should be sufficient to meet domestic demand until new supplies from the upcoming crushing season are available.
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