The sugar industry in Maharashtra, which typically accounts for a significant share of India’s sugar output, is expected to face a reduction in production for the 2024-25 sugar season. In a recent meeting held on Friday in Pune, the West Indian Sugar Mills Association (WISMA) outlined key concerns affecting the industry, forecasting a drop in sugar production.
The meeting, chaired by WISMA President B.B. Thombre, focused on the current crushing season, which began on November 15, 2024 and developments in the sugar industry, with several critical issues discussed.
As per WISMA, as of December 18, 2024, 186 sugar mills in Maharashtra—94 cooperative and 92 private—had crushed 233.67 lakh tonnes of sugarcane, producing 19.26 lakh tonnes of sugar. The average recovery rate stood at 8.24%, with Kolhapur leading the state with the highest recovery rate of 9.68%.
Maharashtra’s Pune division emerged as top region in sugarcane processing so far, with 59.66 lakh tonnes crushed, followed by Kolhapur with 53.11 lakh tonnes. However, the assessment of the sugarcane crop showed that adverse weather conditions from April to June and excessive rainfall through November, led to stunted growth and reduced yields. As a result, the sugar recovery rate is expected to be slightly lower compared to last season.
According to WISMA’s projections, Maharashtra will produce between 100 and 102 lakh tonnes of sugar in the 2024-25 season. However, approximately 12 lakh tonnes are expected to be diverted for ethanol production, leaving a net sugar production estimate of around 90 lakh tonnes. In the 2023-24 sugar season, production was around 110 lakh tonnes.
Despite these figures, the state’s current market price of sugar, ranging from ₹3300 to ₹3400 per quintal, is lower than the average ₹3500 to ₹3600 per quintal in domestic market. According to the sugar body, the lower price has placed sugar mills in a challenging financial position, with production costs surpassing the selling price. WISMA has called on the government to raise the minimum selling price (MSP) of sugar to ₹41 per kilogram to help support the industry.
The association also highlighted concerns over rising costs due to an increase in the Fair and Remunerative Price (FRP) for sugarcane, along with growing production expenses for both sugar and ethanol. They have urged the government to revise the purchase price of ethanol produced from sugarcane juice and molasses, requesting an increase of ₹3-5 per litre.
Further, the ethanol tender published on December 6, 2024, stipulates that ethanol produced by cooperative sugar mills would be given priority for supply to Oil Marketing Companies (OMCs), with private mills being placed third in priority. This decision has raised concerns among private sugar industry players, who worry about potential future challenges. The association plans to communicate the government to remove such restrictive conditions and ensure equitable treatment for all mills.
The meeting also addressed several other pressing issues facing the sugar industry, with a number of proposals and concerns set for further action in the coming months.
