Sugar Stocks Experience Bull Run On MSP Hike Talks: Dhampur Sugar And Rana Sugars Among Top Gainers

As per USDA data, in the upcoming marketing year (MY) 2024/2025, India’s centrifugal sugar production is set to soar to 34.5 million metric tons (MMT), equivalent to a staggering 33 MMT of crystal white sugar. However, this optimism is tempered by a slight dip in the current year’s estimate, which is now lowered to 34 MMT, representing 32 MMT of crystal white sugar.

What led to this adjustment? Factors such as delayed rains in Maharashtra and Karnataka, coupled with the unwelcome intrusion of red rot infestation in central Uttar Pradesh, played a role in this revision.

Despite these challenges, India remains a significant player in the global sugar market. In MY 2024/2025, sugar exports from the country are anticipated to reach 3.7 MMT. However, this figure comes with a caveat: the Indian government is likely to maintain strict control over exports to ensure an adequate supply for domestic consumption and to support the burgeoning Ethanol Blending Program.

Looking closer to home, sugar consumption within India is projected to hit 32 MMT in the forecast year. This surge in demand is attributed to various factors, including the traditional spike in consumption during festivals, the growing popularity of pre-packed food items, and the thriving sugar and confectionery markets. Additionally, both organized and unorganized catering services are expected to contribute to the increased consumption trend.

As India’s sugar industry navigates through both challenges and opportunities, it continues to play a pivotal role in the nation’s economy and global trade dynamics.

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