New Delhi, Delhi
Sugar prices in India have increased by nearly 20 percent during August, raising concerns among consumers over the rising cost of this essential commodity. However, the sugar industry has maintained that there is no shortage of sugar in the country and that domestic demand is being met through available stocks and the existing supply system.
Amid the increase in prices, discussions have also focused on global sugar production. The key question is where India stands among the world’s largest sugar-producing countries and how its production compares with that of neighbouring Pakistan.
India Among the World’s Major Sugar Producers
India is among the leading sugar-producing countries in the world. Brazil and India are generally regarded as the two largest sugar producers globally. Apart from them, Thailand, China, and several other countries also play important roles in the global sugar market.
India’s strong position is largely supported by large-scale sugarcane cultivation and the operation of a large number of sugar mills. Sugarcane farming is an important source of income and a major contributor to local economies in Uttar Pradesh, Maharashtra, Karnataka, and several other states.
Pakistan Far Behind India
Neighbouring Pakistan also produces sugar and has a significant sugarcane cultivation sector. A large number of sugar mills operate in the country as well. However, in terms of overall production capacity and actual sugar output, Pakistan remains significantly behind India.
India also has a very large domestic market. Due to its large population, sugar consumption remains high, making it important to maintain a balance between production and domestic demand.
Consumption Exceeded Production in 2024–25
During the 2024–25 period, India’s domestic sugar consumption stood at approximately 28.1 million metric tonnes. In comparison, total sugar production was around 26.1 million metric tonnes. As a result, domestic consumption exceeded production by nearly 2 million metric tonnes.
However, the sugar industry has said that this gap between production and consumption alone does not indicate a sugar shortage in the country. Available stocks from previous years and the current supply system are helping meet market demand.
Production Had Previously Exceeded Consumption
According to available data, from 2018–19 to 2023–24, India’s annual sugar production consistently remained higher than domestic consumption. However, the situation changed in 2024–25. Production declined to around 26.1 million metric tonnes, while consumption increased to approximately 28.1 million metric tonnes.
This gap is considered one of the factors contributing to concerns over rising sugar prices. However, the sugar industry has currently ruled out the possibility of any serious shortage.
Ethanol Production Adds to the Challenge
India has been promoting the blending of ethanol with petrol. As a result, the sugarcane and sugar industries have become increasingly connected with the energy sector. With more sugarcane being used for ethanol production, the industry has to balance domestic sugar requirements with growing demand from the fuel sector.
Despite the nearly 20 percent rise in sugar prices during August, the industry has stated that sufficient sugar is available in the country. In the coming months, production levels, domestic consumption, ethanol requirements, and market conditions will determine whether sugar prices begin to ease or remain under pressure.
