India’s sugar consumption is expected to fall to around 280 lakh tonnes in the current 2024-25 season ending in September, following a record high of 290 lakh tonnes last year, according to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). The decline is attributed to subdued demand during the typically high-consumption summer months, reported The Hindu Businessline.
“There has been a shift in the consumption pattern this year,” said ISMA Director-General Deepak Ballani. “Unlike last year, April and May did not see the usual surge in demand. Based on the data and government quotas, we don’t anticipate consumption exceeding 280 lakh tonnes.”
The government’s monthly sugar sales quota for May 2025 was reduced by 13% to 23.50 lakh tonnes, down from 27 lakh tonnes a year earlier. Cumulatively, between October and May of the current sugar year, the quota stood at 184.50 lakh tonnes, 6% lower than the 196.50 lakh tonnes released during the same period last year.
For the full 2023-24 season, the government had released a total quota of 291.5 lakh tonnes, nearly all of which was sold by mills, leading to record consumption levels.
Last year’s unusually high demand was partly driven by general elections and reports of sugar leakages to neighboring countries like Bangladesh. “With election rallies and gatherings taking place in the peak summer months, consumption had soared. We’re not seeing those factors this year,” Ballani noted.
Institutional buyers, which account for around 70% of the country’s sugar consumption, are also showing signs of weaker demand. Ballani said there has been a drop in offtake from the fast-moving consumer goods (FMCG) sector, which typically absorbs a significant portion of industrial sugar.
To better understand evolving consumption patterns, ISMA has commissioned a comprehensive study by consulting firm PwC. “The study will examine both institutional and retail trends, map sector-wise consumption, and look at how demand might evolve in the future,” Ballani said. The report is expected within two months.
India’s sugar consumption has grown at an average annual rate of 1.8% over the past decade, rising from 247.97 lakh tonnes in 2015-16 to a peak of 290 lakh tonnes last season. The dip in the current season marks a pause in that upward trend.
Net sugar production for 2024-25 is projected at 261–262 lakh tonnes, after accounting for a diversion of 33–34 lakh tonnes towards ethanol manufacturing. As of mid-May, production had reached 257.44 lakh tonnes, with 533 sugar mills having shut for the season. An additional 4–5 lakh tonnes is expected to be produced during a special crushing season in southern India between June and August.
