Bengaluru: The ICRA (Investment Information and Credit Rating Agency) has pegged India’s net sugar production at 30 million tonnes for the 2025 sugar season starting in October, down from 32 mt in the previous year, “as higher diversion of sugar towards ethanol production is expected”, reports The Hindu businessline.
ICRA estimated that the revenues of integrated sugar mills would increase by 10 percent in FY2025. Higher sales volumes, firm domestic sugar prices, and an increase in distillery volumes on the back of the operationalisation of new capacities will be the growth drivers.
ICRA expects the closing sugar stock to be around 9.1 mt as of September 30, 2024, significantly higher than the 5.6 mt stock on September 30, 2023. This would be equivalent to 3.8 months of consumption (compared to 2.4 months the previous year). The closing stock is expected to further increase over four months by September 30, 2025, according to ICRA’s estimates.
