Here Is India’s Sugar Production And Exports Statistics

India is an undisputed powerhouse when it comes to sugar production. In India sugar production and sales are assessed based on the marketing year which starts in October and ends in September. With its tropical climate, rich and fertile soil, and plenty of water resources, it has proven to be the ideal place for sugarcane cultivation. From raw sugar to refined sugar, the country produces an array of sugar products, which provides jobs to millions of people.  In this article, we will deep dive into sugar production and its statistics in India, especially in the highest sugar-producing states in India.

Total Production In India

The sugar industry in India has seen amazing growth as sugar production in India has increased in the first four months of the ongoing marketing year which runs from October to September. India’s sugar production increased by 3.42% to 193.5 lakh tons during the October-January period of 2022-23, compared to 187.1 lakh tons in the same period of the previous marketing year. This increase can be attributed to higher production in key sugar-producing states in India. But from February 2023 onwards these key states only recorded a dip in sugar production and witnessed early closures of sugar mills further hampering the production.

State-wise Production In India

Here are the three highest sugar-producing states in India:

1.     Maharashtra- Maharashtra, the leading sugar-producing state in India, saw its production rise to 73.8 lakh tons during the October-January period in the ongoing marketing year of 2022-23, up from 72.9 lakh tons in the year-ago period. 

2.     Uttar Pradesh- Uttar Pradesh, the second-largest sugar-producing state, experienced a marginal increase in production, reaching 51 lakh tons compared to 50.3 lakh tons in the previous year.

3. Karnataka- Karnataka, the third-largest sugar-producing state, also witnessed an increase in output, with production rising to 39.4 lakh tons from 38.8 lakh tons in the said period.

Other states in India also contributed to the overall increase in sugar production, with a combined output of 29.3 lakh tons during the October-January period of the 2022-23 marketing year, compared to 25.1 lakh tons in the year-ago period. As per Indian Sugar Mills Association (ISMA) around 520 mills were operating as of 31 January, in comparison to 510 mills last year.

Sugar Exports From India

During the 2021-22 sugar season, India shipped a whopping 110 lakh metric tons of sugar as exports. The Indian government has provided 60 lakh metric tons of sugar to sugar mills in the country for the 2022-23 sugar season. It is expected that all this quantity will be exported by sugar mills in the initial phase, and more supplies will be announced later for the current marketing year.

OFB’s Insight

Key sugar-producing states in India, including Maharashtra, Uttar Pradesh, and Karnataka, have contributed to an increase in the country’s sugar production during the first four months of the current marketing year. However, the Indian Sugar Mills Association (ISMA) forecasted a 5% decrease in India’s overall sugar production during the 2022-23 marketing year, dropping to 340 lakh tons. This is due to the diversion of more sugarcane juice for ethanol production, driven by its rising demand. In the face of these challenges, the industry may need to explore new strategies to sustain growth and profitability over the long term.

Read more: These Are Challenges Faced By The Sugar Industry In India

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