Indian sugar output could fall 2pc on smaller area

MUMBAI, July 31 (Reuters): India's sugar production could fall 2 per cent from a year ago to 33.3 million metric tons in the 2024/25 marketing year, a leading trade body said on Tuesday, citing reduced planting areas in some states because of last year's drought.

A decline in Indian sugar production could prevent the world's second-biggest producer of the sweetener from making the exports and support global prices.

Production is expected to fall in the western state of Maharashtra and neighbouring Karnataka, which together account for more than half of India's total sugar output, the Indian Sugar Mills & Bio-Energy Manufacturers Association (ISMA) said in a statement.

The country is likely to produce 33.3 million tons of sugar without diversion of sugar for the ethanol production in the new season from October 1.

In the current marketing year India's sugar output is pegged at 34 million tons, including diversion of 2 million tons of sugar for ethanol production, the ISMA said.