India is expecting record sugar production in the next marketing year starting from October. A large number of farmers have turned to sugarcane cultivation mainly due to adequate water supply and lower prices of other competing cash crops.
The news agency Reuters reported this information citing local farmers and sugar industry officials.
India is the second largest sugar producing country in the world. The country imposed export restrictions for two years as sugarcane yields fell due to low rainfall. However, exports are expected to resume in 2025–26 as massive production prospects emerge.
Traders say that if India starts exporting at full speed, the price of sugar in the world market may come down. That's because the country will increase its supply of sugar to the world market at a time when dry weather threatens to reduce exports from top producer Brazil.
Amar Chavan, a farmer in the western Solapur district of Maharashtra state, has planted sugarcane on 6 acres of land. “Last year we couldn't plant sugarcane because there was no water for irrigation,” he told Reuters. There is plenty of water this time, because the rainfall has been good.'
Farmers of Solapur depend on Ujjani Dam. The dam is now at 100 percent capacity, compared to just 25 percent last December.
The reservoirs of Maharashtra and neighboring Karnataka together provide water for nearly half of India's sugar production. According to official data, these reservoirs are holding much more water now than in 2023.
Annual monsoon rainfall in India plays an important role in the cultivation and yield of service crops like sugarcane. Sugarcane growing areas in Maharashtra and Karnataka have received an average of 39 percent more rain this year.
National Federation of Cooperative Sugar Factories Managing Director Prakash Nayaknavare said, 'Farmers are planting sugarcane with full enthusiasm. This planting program is creating the possibility of record sugar production in the coming season.' He noted that the sugarcane planted this year will be ready for harvesting in the next marketing year.
According to the federation, India's sugar production in the current season is likely to fall to 2.8 million tonnes, down from last year's 3.19 million tonnes, while India's annual domestic demand is around 2.96 million tonnes.
Meanwhile, it is not because of abundant water that Indian farmers are inclined to sugarcane cultivation. Many farmers have switched from alternative crops such as soybeans and cotton to sugarcane, which is now less profitable.
Managing Director of Maharashtra-based Sugar Mill Natural Sugar and Allied Industries B. B. Thombare told Reuters that last year, farmers switched to other crops besides sugarcane due to lack of water. But they have suffered losses. Now they are looking for a crop that will give sure profit.
This year's increased sugarcane planting will enable India to export 3 million to 5 million tonnes of sugar next season. Ashwini Bansod, vice president of product research at Philip Capital India, expects this to be very possible if the weather is favorable and there is not much insect infestation.
India's sugar export markets include—Indonesia, Bangladesh and United Arab Emirates. India was the world's No. 2 exporter for the five years up to 2022–23, with an average annual export of 6.8 million tonnes.
