India’s sugar consumption is estimated to decline to about 280 lakh tonnes in the current season (2024-25) ending September, after touching a record 290 lakh tonnes last season, on subdued demand, trade body Indian Sugar and Bio Energy Manufacturers Association (ISMA) has said.
“There was a change in sugar consumption trend this year, with the peak summer months of April and May witnessing a subdued demand. The sugar sale quota released by the government this year is lower than last year. After all calculations and estimation, we don’t see that the consumption will go beyond 280 lakh tonnes,” said Deepak Ballani, Director-General, ISMA, said.
Monthly quota
The monthly sugar sales quota of May 2025, set by the government to regulate domestic sugar availability and prices, was down by 13 per cent at 23.50 lakh tonnes from 27 lakh tonnes a year ago. Also, the cumulative sales quota in the first seven months (October till May) of sugar year 2024-25, stood at 184.50 lakh tonnes, down 6 per cent from 196.50 lakh tonnes in the year-ago period. Against a quota of 291.5 lakh tonnes released by the government for 2023-24, the sales by mills were 290 lakh tonnes.
During 2023-24, India’s sugar consumption hit a record high of 290 lakh tonnes due to factors such as the general elections and reported leakages to countries such as Bangladesh. “Due to the huge rallies in April-May during the hot months in the summer, the off-take was higher. This year, we don’t have any such thing,” Ballani said. Consumption of sugar peaks during the summer and also ahead of Diwali festive season.
Based on the discussions with institutional buyers, Ballani said there was some demand erosion in demand from the FMCG sector. Institutional buyers are the major consumers of sugar, accounting for around 70 per cent of the consumption, while the retail sales accounts for the rest.
Sector-wise trends
ISMA has commissioned a top consulting firm to carry out a comprehensive study on the sugar consumption trends in the country. The study assumes significance as the non-sugar alternatives are also witnessing demand in the recent years.
“We have started doing a comprehensive study on a complete mapping of sugar consumption, both institutional and retail users. The study will also assess the sector-wise trends and future roadmap as far as the consumption is concerned,” Ballani said. The study is likely to be completed in about two months.
Sugar consumption has been growing at around 1.8 per cent per annum over the past decade. From around 247.97 lakh tonnes in 2025-16, the sugar consumption peaked last season before slipping during the current season.
Ballani said the net sugar production for the 2024-25 season is estimated to be between 261 and 262 lakh tonnes, after factoring in diversion of 33-34 lakh tonnes towards ethanol. Till mid-May, the production was 257.44 lakh tonnes, and about 533 mills have closed operations for the season. The expected additional production would be around 4-5 lakh tonnes in the special season during June-August in parts of South India.