India’s sugar industry is facing significant challenges due to a combination of unfavorable weather conditions. After last year’s drought, this year’s excessive monsoon rains have had a severe impact on sugarcane yields across major producing states. As a result, the country’s sugar production is expected to fall short of domestic consumption for the first time in eight years, forcing the nation to halt its sugar exports during the current season.
India is the world’s second-largest sugar producer, and states such as Maharashtra, Uttar Pradesh, and Karnataka, which account for over 80% of the country’s total sugar production, are experiencing considerable yield reductions. Prolonged droughts followed by unseasonal heavy rains, and issues like red rot disease in sugarcane crops, have severely impacted the crop's quality and quantity. As a result, sugar production estimates for the 2024/25 season are projected to be around 27 million metric tons, well below the annual consumption of over 29 million metric tons.
While India has been a major sugar exporter in the past, the current scenario suggests that no sugar will be exported this season. Experts fear that this will not only impact global sugar markets but could also lead to higher domestic prices, further burdening Indian consumers. The government’s failure to address the adverse weather impacts in time and the lack of a long-term solution to ensure steady sugar production could also aggravate the situation. The sugar industry has already appealed for financial support and subsidies from the government to mitigate the damage caused by these climatic challenges.
The situation has also raised concerns about India’s overall agricultural stability, especially in crucial sectors like sugarcane, which supports millions of farmers. As the global market eyes India's next move, the country’s sugarcane-dependent regions are bracing for tough times ahead.