It is reported by chinimandi.

According to the report, it forecasts MY 2024-25 sugarcane production to recover from a 12 percent reduction in MY 2023-24. Sugar production in MY 2024-25 is expected to increase to 10.2 MMT, up 16 percent from MY 2023-24, following the recovery in sugarcane production and increased sucrose yield.

Meanwhile, sugar production in MY 2023-24 is estimated to decline to 8.8 MMT, down 20 percent from MY 2022-23 due to reduced sugarcane production and low sugar extraction rate.

However, molasses production in MY 2023-24 is likely to increase to 3.57 MMT, up 6 percent from MY 2022-23. Sugar consumption growth is expected to increase around 4 percent annually in MY 2023-24 and MY 2024-25, following the slow economic recovery in 2024.

MY 2022-23 sugar consumption growth decelerated to 12 percent from 17 percent in MY 2021-22 due to the slowdown in the economic recovery in 2023.

In addition, non-alcoholic beverage manufacturers continue to reformulate their products to reducing the sugar content and avoid the progressive sugar tax during the third phase of sugar tax transition between April 1, 2023, and March 31, 2025, by substituting sugar with artificial sweeteners.

The report further forecasts MY 2024-25 sugar exports to level off to 9 MMT, down 10 percent from MY 2023-24 as India, the world’s second largest sugar exporter, is likely to resume sugar exports in MY 2024-25.