Maharashtra, once the crown jewel of India's sugar production, is facing a bitter truth: its sugar output has plummeted by a staggering 20% in the 2024-25 season. This decline is not just a minor setback but a significant challenge that threatens the state's status as a leading sugar producer. As the sugarcane crushing season nears its end, Maharashtra's production has reached 7.61 million tonnes, a sharp drop from the 9.52 million tonnes achieved during the same period last year.
Early Mill Closures:
A record 92 sugar mills have ceased operations, including 40 in Solapur and 16 in Kolhapur, compared to just 36 last year. This premature shutdown is largely due to low sugarcane yields and increased crushing capacity.
Lower Recovery Rate:
The average sugar recovery rate has fallen to 9.37%, down from 10.04% in the previous season, further reducing overall sugar output.
Delayed Crushing Season:
The late start to the season and diversion of sugarcane for ethanol production have also contributed to the decline.
The Indian Sugar Mills Association (ISMA) projects a 15% drop in national sugar production for the 2024-25 season, with estimated output at 27.2 million tonnes compared to 32 million tonnes in 2023-24. Despite this, India is unlikely to face a sugar shortage due to adequate initial stocks and strong domestic demand.
Maharashtra's struggle to maintain its sugar production levels is a wake-up call for the industry. To regain its position as a leading producer, the state must address operational challenges, improve recovery rates, and adapt to changing market demands. As the sugar sector navigates these challenges, one thing is clear: the future of Maharashtra's sugar industry depends on its ability to innovate and adapt.