I. Global Scenario
Having proved her capacity to export big quantities and becoming 2nd largest exporter of Sugar in World during 2021-2022 by exporting record 11.1 million mt of Sugar, Indian sugar exports have come down thereafter due to no surplus.
During 2022-23, exports got reduced to 6.4 million mt and during 2023-24 no sugar export quota / sugar exports from country took place.
During the Sugar year 2024-25, while Government allowed quota of 1.0 million mt sugar exports from the country, pace of exports is very slow and as per estimates total exports from country may fall short of quota of 1.0 million mt.
Absence of Indian sugar from global trade during 2023-24 and 2024-25 and deficit in global balance sheet has majorly helped sugar prices in international market and export values remaining favorable for Indian exports till recently.
However, during April/May - 2025, macro factors have adversely affected the demand and sugar prices and tariff war, weak demand, lower crude oil prices have dampened the spirit.
Strengthening of currencies of major sugar producing counties like India and Brazil during April / May - 2025 has also not improved the bearish sentiments.
Indian exporters finding it difficult to complete quota of 1.0 million mt allotted during 2024-2025 due to weak demand of sugar, costly sugar and depressed sugar prices in market.
Going ahead, World sugar is moving in surplus from deficit with Brazil and India expecting good crop during 2025-26. Brazilian 2025-26 season has started from April month and Indian season will start from October month.
The graph of ICE 11 (Raw Sugar) and LIFFE (White Sugar) exchange prices during last 3 years i.e. April 2022 – March 2025 is given below:-
Chart 1: ICE 11 Sugar Price movement
From the above price graph of 3 years, it can be observed that Sugar price started from lower levels, then significantly firmed up during the later part of Sugar Year 2022-2023 and Sugar Year 2023-2024 and during 2024-25 has lost all value gained during the period.
ICE 11 (Raw Sugar Prices)
Raw Sugar prices started from the level of 19.37 cents/pound on 1st April 2022, touched low of 17.4 during July 2022, high of 27.71 during November 2023 and closed at level of 18.86 cents / pound as on 31st March, 2025.
LIFFE (White Sugar Prices)
White Sugar prices started from the level of 538.5 USD/MT as on 1st April 2022, touched high of 763.4 USD during November 2023 and closing level of 466.4 as in March 2025, lowest during the period.
Table 1: Global Balance Sheet
Unit: 000 Metric tonnes, Raw value
Year (Oct-Sept) |
Production | Consumption | Export | End Stocks |
| 2014-15 | 169373 | 167079 | 58419 | 93953 |
| 2015-16 | 163825 | 170287 | 66943 | 88362 |
| 2016-17 | 169073 | 172683 | 65442 | 86492 |
| 2017-18 | 179828 | 170420 | 63460 | 96543 |
| 2018-19 | 174435 | 169315 | 57639 | 103525 |
| 2019-20 | 167866 | 168492 | 65717 | 102950 |
| 2020-21 | 168702 | 169266 | 64858 | 102544 |
| 2021-22 | 172189 | 176066 | 67663 | 98801 |
| 2022-23 | 177804 | 178905 | 65661 | 99121 |
| 2023-24 | 181384 | 179972 | 69635 | 97815 |
| 2024-25 (P) | 175540 | 180421 | 62661 | 93597 |
Source: ISMA. Year (Oct-Sept) |
||||
Table 2: Major Sugar producing countries
| Unit: 000 Metric tonnes, Raw value | |||||||
S. No. Name of Country |
2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 (P) |
| 1 Brazil | 29030 | 39654 | 38509 | 31983 | 43256 | 46359 | 42372 |
| 2 India | 32903 | 27411 | 31231 | 35526 | 32800 | 32200 | 26400 |
| 3 China | 10503 | 10415 | 10663 | 9814 | 8970 | 9950 | 10300 |
| 4 Thailand | 14441 | 8228 | 6976 | 10134 | 10803 | 8775 | 11000 |
| 5 U.S.A. | 7551 | 6908 | 7827 | 7767 | 7709 | 7695 | 7783 |
| 6 Mexico | 6426 | 5278 | 5715 | 6185 | 5224 | 4704 | 5094 |
| 7 Pakistan | 5552 | 4988 | 5502 | 7922 | 6709 | 6752 | 7000 |
| 8 Australia | 4102 | 3862 | 4303 | 3322 | 4391 | 3794 | 4052 |
| 9 Germany | 3825 | 3980 | 3737 | 4104 | 3777 | 4002 | 4053 |
| 10 France | 5060 | 4758 | 3354 | 3951 | 3612 | 3900 | 3943 |
| 11 Russia | 6292 | 7063 | 5391 | 5898 | 6335 | 6930 | 6400 |
| 12 Indonesia | 2267 | 2095 | 2294 | 2303 | 2271 | 2398 | 2500 |
| 13 Philippines | 2037 | 2146 | 2180 | 1868 | 1790 | 1923 | 2000 |
| 14 Argentina | 1617 | 1861 | 1627 | 1820 | 1550 | 1700 | 1750 |
| 15 Colombia | 2207 | 2179 | 2097 | 2156 | 2034 | 1800 | 2000 |
| 16 South Africa | 2307 | 2116 | 1861 | 1901 | 2054 | 2012 | 2063 |
| 17 Guatemala | 2930 | 2764 | 2565 | 2762 | 2609 | 2618 | 2650 |
| 18 Poland | 2190 | 2066 | 1984 | 2271 | 2011 | 2335 | 2410 |
| 19 Turkey | 2283 | 2587 | 2952 | 2514 | 2760 | 3400 | 3200 |
| 20 Ukraine | 1669 | 1312 | 1277 | 1432 | 1330 | 1850 | 1600 |
| 21 Egypt | 2519 | 2280 | 2720 | 2460 | 2360 | 2300 | 2700 |
| 22 Cuba | 1193 | 1200 | 824 | 540 | 355 | 290 | 320 |
| 23 Peru | 1146 | 1172 | 1103 | 1107 | 1200 | 1280 | 1300 |
| 24 Vietnam | 1174 | 769 | 709 | 742 | 871 | 1050 | 1100 |
| 25 Iran | 1520 | 1377 | 1463 | 1329 | 1300 | 1440 | 1440 |
| 25 Iran | 1520 | 1377 | 1463 | 1329 | 1300 | 1440 | 1440 |
| Source: ISMA. Year (Oct-Sept) |
Analysis of International Sugar price, various factors affecting price during the Year April 2024 – March 2025 as under: -
Sugar Price April 2024 – March 2025 |
Chart 3: ICE 11 Price Movement |
Chart 4: LIFFE Price Movement
From the above graphs for the Year April 2023- March 2024 it can be seen; sugar prices has come down quite significantly.
ICE 11 price started from the level of 22.72 cents as on 1st April 2024, touched low of 17.57 cents during August 2024, high of 23.23 cents during September 2024 with closing 18.86 cents as on 31st March 2025. LIFFE price started from the level of 650.7 USD/mt highest during the period on 1st April 2024, touched low of 466.4 USD during January 2025 month, with closing level at 534.9 USD/mt as on 31st March 2025.
Influence factors during the Year 2024-25
India
After having exported record 11.1 million mt during 2021-22 and 6.4 million mt during 2022-23, India has been absent from export market during 2023-24. During 2024-25, a quantity of 1.0 million mt has been allowed by Government which country finding it difficult to export in total due to weak demand.
Indian sugar production estimates for the year 2024-25 have also been a bullish factor where All India net sugar production estimate of 26.4 million mt is lowest in last 8 years.
Monsoon in the country during the year 2024 has been normal and IMD has predicted above normal monsoon for the year 2025, which is good for the crop.
During the coming year 2025-26, with estimate of bounce back of Indian crop and gross sugar production estimate of 35 – 37 million mt, it is estimated that Government will allow export quota of 2.0 – 3.0 million mt.
Indian sugar has always been an influence factor on global balance sheet and prices and with Indian sugar absent from global market for last 2 years, sugar prices remained favorable for most part of the period. During Sugar year 2024-25, prices has come down but still favorable for Indian exports, but exports affected due to weak demand.
Brazil CS
Table 3: Cane Crush / Sugar Production / Ethanol Production – Brazil CS
Year: April – March
Particulars |
Unit | 2019/2020 | 2020/2021 | 2021/2022 | 2022/2023 | 2023/2024 | 2024/2025 |
| Actual – Year (April – March) | |||||||
| Total cane crush | Million MT | 590.36 | 605.46 | 524.10 | 548.28 | 654.45 | 621.88 |
| Sugar Production | Million MT | 26.76 | 38.46 | 32.10 | 33.73 | 42.42 | 40.17 |
| Ethanol | Billion | 33.26 | 30.37 | 27.60 | 28.91 | 33.59 | 34.96 |
| Production | Litres | ||||||
Particulars |
Unit | 2019/2020 | 2020/2021 | 2021/2022 | 2022/2023 | 2023/2024 | 2024/2025 |
| Actual – Year (April – March) | |||||||
Diversion of Cane |
|||||||
| Used for sugar | % | 34.33 | 46.16 | 45.00 | 45.90 | 48.87 | 48.05 |
| Used for ethanol | % | 65.67 | 53.84 | 55.00 | 54.10 | 51.13 | 51.95 |
| TRS | 138.57 | 144.72 | 142.90 | 140.80 | 139.22 | 141.07 |
Source: UNICA
From the above figures, it can be observed that during year 2023-2024, Brazil CS crushed all time high record cane of 654.45 million mt as against cane crush of 548.28 million mt during 2022-2023. Due to better price parity with sugar, diversion of cane towards sugar was also higher at level of 48.87% during 2023-24 as against 45.90% during 2022-2023 and record low of 34.33% during 2019-2020.
During 2023-2024, Brazil CS has produced record sugar at 42.42 million mt as against 33.73 million mt during 2022-23.
During year 2024-2025, cane crush has gone down marginally to level of 621.88 million mt and with diversion of 48.05% cane towards sugar, Brazil CS produced a quantity of 40.17 million mt sugar.
During 2024-2025, quality of cane i.e., TRS has also improved to 141.07 as against 139.22 last year, though TRS is still far behind from level of 144.72 during 2020-21.
Ethanol production in Brazil CS during 2023-2024 increased to 33.59 billion litres from level of 28.91 billion litres during 2022-2023. During 2024-2025, Ethanol production has further increased to the level of 34.96 billion litres.
For the Year 2025-26, it is estimated that there will be increased diversion of cane towards Sugar because of better price parity.
As per S&P Global, for the year 2025-26, it is estimated that there will be diversion of 51.46% cane towards Sugar manufacturing which at cane crush estimate of 602.14 million mt will give 41.39 million mt of sugar and 33.81 billion litres of Ethanol in Brazil CS.
Datagro has projected that 2025-26 Brazil CS sugar production would climb by 6% to 42.4 million mt. Conab (Research agency) has estimated that Brazils (including North East (NE)) 2025/26 sugar production will be higher by 4% to level of 45.875 million mt.
USDAs Foreign Agricultural Service (FAS) has predicted that Brazils 2025/26 sugar production would climb 2.3% to 44.7 million mt from 43.7 million mt in the previous season.
Thailand
Particulars |
Year 2023-2024 | Year 2024-2025 | Year 2025-2026 |
| Area Planted (1000 HA) | 1655.0 | 1655.0 | 1670.0 |
| Cane Production (Million MT) | 84.7 | 95.9 | 96.0 |
| Sugar Production (Million MT) | 8.8 | 10.2 | 10.3 |
| Total Exports (Million MT) | 5.1 | 10.0 | 7.0 |
Source: USDA Report
During 2024-2025, Sugar production in Thailand is estimated to increase to level of 10.2 million mt as against 8.8 million mt last year.
During 2025-2026, Sugar production is estimated to marginally increase to level of 10.3 million mt. During 2025-2026, sugar exports from Thailand is estimated to be affected due to continuation of export supply from Brazil, start of exports from India and also stoppage of imports of sugar syrup from China. During 2023-2024, overall cane availability and sugar production is lower because of drought conditons and El-Nino factor.
Crude Oil
Crude Oil plays major influencing role for Sugar prices as it is one of the major macro factors and secondly crude oil prices affect diversion of cane towards ethanol in Brazil.
During the year 2023-24 and 2024-2025, higher sugar prices have motivated sugar mills in Brazil for higher / record diversion of cane towards Sugar. It is estimated that during 2025-2026, Brazilian mills will further increase diversion of cane towards sugar due to current weak crude oil prices.
During period April 2024- March 2025, Crude oil price (Brent) started at level of 87.42 USD/barrel as on 1st April 2024, touched low of 68.33 USD, high of 92.18 USD with closing level of 74.74 USD/ barrel as on 31st March 2025. Average crude oil price through the Year worked out to 78.17 USD/barrel.
During April – May 2025 month, crude oil prices has further weakened which has affected international sugar prices as well.
Currency
Brazilian Real: During the Year (April – March) 2024-2025, Brazilian real has started from the level of 5.05 in beginning of April 2024 and the level by end of March 2025 has significantly depreciated to 5.70. During the year, the weakest level was 6.31, strongest level was 5.0 with average level of 5.61.
Indian Rupee: INR has depreciated during 2024-25 (April – March), from the level of 83.36 as on 1st April 2024 to 85.45 as on 31st March 2025 i.e., depreciation of 2.51%.
During the year, the strongest level has been 82.95, weakest level has been 87.99 with average of 84.53.
World Sugar Balance – Year (Oct-Sept)
ISO in its second revision of global sugar balance 2024-25, increased global deficit from earlier figure of 2.513 to 4.881 million mt. A global deficit of this magnitude has not been seen for nine years.
World production in 2024/25 has been revised to 175.54 million mt down 5.844 million mt from last season. Drivers include small post Oct 2024 production totals in major southern hemisphere, lower than expected production in India & Pakistan and lower cane total in Thailand.
Particulars |
2024-25 | 2023-24 | Variation | |
| Million mt | Million mt | Quantity (Million mt) | % | |
| Production | 175.540 | 181.384 | -5.844 | -3.22 |
| Consumption | 180.421 | 179.972 | 0.449 | 0.25 |
| Surplus / Deficit | -4.881 | 1.412 | ||
| Import demand | 63.324 | 69.119 | -5.795 | -8.38 |
| Export availability | 62.661 | 69.635 | -6.974 | -10.02 |
| End stocks | 93.597 | 97.815 | -4.218 | -4.31 |
| Stocks / Consumption (%) | 51.88 | 54.35 |
While there are no ISO estimate available but Year 2025-26 is estimated to be surplus with estimated higher sugar production in all major sugar producing countries including India, Brazil and Thailand. Greenpool has estimated surplus of 2.7 million mt for the Year 2025-26.
II. Indian Scenario
Indian sugar Industry has gone through sharp reduction in sugar production during the Sugar Year 2024-25 (Oct-Sept). This reduction in sugar production is due to weather-related issues in the state of Maharashtra and Karnataka and cane variety issues in state of U.P.
Other than reduced cane availability and capacity utilization issues, Industry has also faced lower sugar recovery during the year 2024-25 which has severely affected the viability of sector.
In the state of U.P., sugar recovery is slated to come down to the level of 10.70 (before diversion towards Ethanol) during 2024-2025 from level of 11.21 during 2023-2024 and all-time high level of 11.63 during 2019-20.
At start of the year 2024-2025, ISMAs All India Gross Sugar Production estimate (before diversion towards Ethanol) was pegged at 33.3 million mt which later got reduced to 31.0 million mt and now stand at 29.9 million mt as against 34.1 million mt last year. Net sugar production (after diversion towards Ethanol) for the year 2024-2025 is pegged at 26.4 million mt.
Some of the agencies are pegging their number at level 26.0 million mt for All India sugar production for the year 2024-25.
On sugar export front, while international market continued to be favorable, sugar exports continue to be in restricted category since last 3 years and allowed against specific Government quotas.
During 2023-24, Government has not allowed any sugar export quota depriving Indian sugar sector of capitalizing higher sugar prices.
During the year 2024-25, Government has allowed sugar export quota of 1.0 million mt which has helped Industry in improvement of domestic sugar prices, capitalizing on higher international prices and removing the surplus sugar helping with better cash flow for Industry.
Domestic Sugar prices continued at a dismal and unviable level till December 2024 and prices at start of January 2025 were in range of around 3750 – 3800 per qtl and after announcement of sugar export quota of 1.0 million mt sugar prices improved and price levels during first week of May 2025 month are 4050 – 4160 per qtl.
Domestic Sugar prices during the year 2024-25 have shown positive sign and it is for the first time that domestic sugar prices in state of U.P. have stabilized in price range of 4000 – 4150 per qtl since January 2025.
On the Ethanol front, 2024-2025 is the second year in a row when the Government has not increased prices for B heavy and Sugar Syrup based Ethanol.
During Ethanol year 2023-24 (Nov-Oct), the Government has in between restricted production of Ethanol from B heavy / Sugar Syrup due to estimated shortage of sugar for domestic market and later allowed it to tune of diversion of 1.7 million mt diversion of sugar.
During Year 2024-25, Government had issued cycle – 1 of tender for C Molasses / B heavy /Syrup Ethanol / Grain Ethanol where a quantity of 391.3 crore had been bid from Sugar route (C Molasses / B Heavy / Syrup Ethanol), against which initially Government has placed orders for a quantity of 311.9 crore litres i.e., 79.7% of bid quantity.
Thereafter the Government floated cycle -2 and cycle-3 of the tender where bids were asked from C heavy and Grain / surplus rice Ethanol only and no quantity from B heavy and Syrup Ethanol was allowed to be bid.
As on date, total allocated quantity from sugar route is 337.5 crore litres for Ethanol year 2024-2025 which is 34% of total allotted quantity.
Since Government has not increased prices of B heavy and Syrup ethanol, current ethanol prices are not viable in line with the cost, therefore many of the Mills / groups more particularly in state of U.P. are prioritizing sugar production over ethanol keeping Ethanol manufacturing capacities idle.
Sugar production estimate for the year 2025-2026 is pegged higher at gross production level of 35.0 – 37.0 million mt by various research agencies which will give opportunity of diversion of 5.0 – 6.0 million mt of sugar towards Ethanol but such diversion is possible only if Government gives viable Ethanol prices. Further Industry was hopeful of an increase in sugar price MSP which was last increased during 2019 to level of 3100 per qtl but no decision taken and understandably under consideration of Government. It is utmost required to address the volatility in sugar production, declining productivity and recovery, cane varietal issues, weather related vagaries and therefore it is high time now that Industry under support and guidance from the Government sources starts working on better cane varieties, Artificial Intelligence usage for improved cane productivity, better water conservation mechanisms like drip irrigation, rainwater harvesting, trash shedding and mulching, etc. for optimum productivity.
Declining Sugar Production
Chart 5: Declining Sugar Production
During year 2021-22 All India Gross Sugar production reached all time high level of 39.0 million mt and thereafter it is on continuous decline. Gross Sugar production during the year 2024-25 is estimated to come down to 29.9 million mt, down by 23.3% as against high of 39.0 million mt during 2021-22.
On similar lines, net sugar production has come down from level of 35.8 million mt during 2021-22 to estimated level of 26.4 million mt during 2024-25, down by 26.3%. In fact, some of the estimates for net sugar production during sugar year 2024-25 are down to the level of 26.0 million mt.
The dip in sugar production is mainly attributed to weather, cane variety, and crop disease related issues. Sugar production is estimated to bounce back during 2025-2026 on account of good monsoon during 2024 and another normal one predicted during 2025. While no official estimates are available for 2025-26, it is estimated that gross sugar production will be in range of 35 – 37 million mt as against estimated 29.9 million mt during 2024-25 i.e., increase by 17.1% - 23.7%.
The USDA Foreign Agricultural Service (FAS) projects that Indias sugar production will reach 35 million metric tons raw value (MMT-RV) for the 2025/26 marketing year. This represents a 26% increase from the current years revised estimate. This increase is expected to lead to higher raw and refined sugar exports and ending stocks, according to USDA.
Dipping Sugar Exports
Chart 6: Dipping Sugar Exports
Due to the dip in sugar production, sugar export numbers have also come down in the last 4 years. After having touched an all-time high of 11.1 million mt during 2021-22, sugar exports were Nil during 2023-24 due to no Government permissions. It is during 2024-25, Government has allowed sugar export 1.0 million mt against which movement of exports so far is very slow. As per Industry estimates, it is also possible that quota of 1.0 million mt is not fully exported. During 2025-2026, it is estimated that with estimated rise in sugar production, Industry will get export quota of 2.0 – 3.0 million mt.
Volatility in diversion of sugar towards Ethanol
Chart 7: Volatility in diversion of sugar towards Ethanol of sugar towards Ethanol has been quite volatile in the last 4 years with high of 3.8 million mt during 2022-23 and low of 2.0 million mt during 2020-21 and 2.1 million mt during 2023-24.
The reason for sharp dip in diversion of sugar towards Ethanol during 2023-24 is government restriction on usage of sugar syrup/ B heavy for manufacturing Ethanol. During 2024-25, initial allocation of Ethanol by Oil companies was equivalent to diversion at 3.8 million mt sugar which is now estimated at 3.5 million mt due to reduced viability. Some estimates suggest that this diversion may further reduce to 3.2 million mt.
It is estimated that during 2025-26 with increasing sugar production and ethanol blending of 20% across the country, the diversion of sugar towards Ethanol will touch 5.0 million mt assuming Government provides viable prices in line with cost.
Sugar consumption
Chart 8: Sugar consumption
As per the above figures, while there is an increase in consumption from the level of 26.6 million mt during 2020-21 to the level of 29.0 million mt during 2023-24, it is estimated that during 2024-25, consumption is slated to come down to the level of 28.0 million mt as per ISMA and Government figures.
As per trade during 2023-24, there had been reported movement of around 0.7 million mt sugar to neighboring countries like Bangladesh through porous borders which is also included in overall consumption figure because of which consumption is coming at higher level of 29.0 million mt.
During 2024-25, such movement of sugar to neighboring countries has totally stopped and therefore estimated consumption is slated to come down to 28.0 million mt. Another reason for lower consumption to 28.0 million mt is squeezing pipeline sugar due to current higher prices.
Some other agencies are estimating consumption in the year 2024-25 at the level of 28.5 million mt.
Net Sugar production lower than consumption
Since the year 2010-11 (last 15 years), sugar production has always been more than consumption and the year 2024-25 will be the second year when net sugar production is estimated to be lower than consumption. First year has been the year 2016-2017 when net sugar production had been 20.29 million mt as against domestic consumption of 24.56 million mt.
2024-25 will be the second year in the last 15 years when net sugar production is estimated at a lower level of 26.4 million mt as against consumption of 28.0 million mt.
The graphical representation of the last 15 years sugar production v/s consumption is as below:
Chart 9: Last 15 years sugar production v/s consumption
Year Sugar Year (Oct – Sept)
Very interestingly before 2010-11, sugar production was more cyclical in nature where after every 2-3 years of surplus there is a period of deficit Sugar production which use to act as balancing factor for surplus Sugar production.
The graphical representation of cyclical sugar production during the period 1980 till 2010 is as below:
Chart 10: Cyclical sugar production during the period 1980 till 2010
Sugar stocks below 20% of consumption
During the year 2024-2025, sugar closing stocks are estimated at a level of 5.4 million mt which is 19.3% of estimated consumption.
In the last 15 years, there have been only 2 instances before 2024-2025, when sugar stocks have gone down below level of 20% of domestic consumption.
The first instance was during 2016-17 when closing sugar stocks were 38.8 million mt which was 15.8% of domestic consumption and second one during 2022-23 when sugar stocks were 5.6 million mt which was 19.9% of domestic consumption.
Sugar stocks of 2024-25 are quite a balance position where on one hand has helped sugar Industry in maintaining the sugar prices and liquidation of surplus sugar easing cash flow issues on other hand is sufficient to take care of countrys requirement before start of new season.
The graphical representation of sugar stocks for the last 15 years is as below:
Chart 11: Sugar stocks for the last 15 years
State-wise Sugar Production
State-wise Sugar Production on All India basis since the Year 2018-19 given below in Table:
Table 4: State-wise Sugar Production
Year: Oct to Sept
| STATE-WISE SUGAR PRODUCTION (MILLION TONNES) | |||||||
S. No. States |
2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
| Actual | Estimate | ||||||
| 1 Uttar Pradesh | 11.82 | 12.64 | 11.06 | 10.20 | 10.48 | 10.41 | 9.30 |
| 2 Maharashtra | 10.72 | 6.17 | 10.65 | 13.72 | 10.59 | 11.10 | 8.10 |
| 3 Karnataka | 4.43 | 3.49 | 4.47 | 6.04 | 5.66 | 5.19 | 4.36 |
| 4 Gujarat | 1.12 | 0.93 | 1.05 | 1.21 | 1.00 | 0.93 | 0.89 |
5 Tamil Nadu & Pondicherry |
0.96 | 0.79 | 0.88 | 1.25 | 1.48 | 1.07 | 0.80 |
| 6 Punjab | 0.79 | 0.54 | 0.55 | 0.60 | 0.66 | 0.59 | 0.57 |
| 7 Bihar | 0.84 | 0.73 | 0.48 | 0.46 | 0.63 | 0.69 | 0.62 |
| 8 Haryana | 0.70 | 0.74 | 0.76 | 0.72 | 0.75 | 0.61 | 0.51 |
| 9 M.P. & C.G. | 0.56 | 0.46 | 0.54 | 0.65 | 0.60 | 0.68 | 0.51 |
| 10 Uttarakhand | 0.40 | 0.46 | 0.42 | 0.45 | 0.49 | 0.31 | 0.37 |
| 11 Andhra Pradesh | 0.51 | 0.29 | 0.20 | 0.21 | 0.19 | 0.16 | 0.09 |
| 12 Telangana | 0.26 | 0.14 | 0.12 | 0.23 | 0.26 | 0.18 | 0.17 |
| 13 Others | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.11 |
All India |
33.15 | 27.40 | 31.18 | 35.75 | 32.81 | 31.95 | 26.40 |
The above figures are net sugar production figures and diversion of Sugar towards Ethanol is in addition. During the year 2021-22, Country has achieved record sugar production of 35.75 million mt and became the largest sugar producer in World surpassing Brazil.
During the Year 2022-23, the countrys Sugar production has taken a dip of almost 8.2% due to a 22.8% dip in Sugar production in State of Maharashtra and 6.3% in state of Karnataka.
During the Year 2023-24, the countrys sugar production has taken a dip of 2.6% due to dip in U.P., Karnataka and Tamil Nadu.
During 2024-25 net sugar production estimated to come down by 17.37% compared to last year and in fact the year has witnessed the lowest sugar production in the last 8 years. After production of 20.3 million mt during 2016-17, 2024-25 is the year with lowest sugar production.
During 2024-25, all states have gone down on sugar production quite significantly.
Maximum fall has been in state of Maharashtra at level of 27.03% where sugar production has come down from level of 11.10 million mt during 2023-24 to level of 8.10 million mt during 2024-25.
Karnataka sugar production is down by 16% and U.P. state is down by 10.7%.
Tamil Nadu is suffering heavily where during 2023-2024 sugar production was down by 27.7% and then during 2024-25 production is further down by 25.2% as compared to last year.
U.P. and Maharashtra keep on changing slot of number 1 sugar producing state in country. It can be observed from the table that for 3 years (18-19 to 20-21) U.P. was the leading sugar producing state in country. For the next 3 years (21-22 to 23-24), Maharashtra became the leading producer and coming to the year 2024-25, U.P. again regained the position of leading sugar producer. It is estimated that in the year 2025-26, Maharashtra crop will bounce back, and Maharashtra will again take slot of number 1 sugar producing state in country.
State wise Yield of Sugarcane (Tonnes/Hectare)
The details of yields of various states are given below from where it can be seen how the productivity in terms of yield has changed.
Table 5: State wise Yield of Sugarcane (Tonnes/Hectare)
Year: Oct to Sept
STATE-WISE YIELD OF SUGARCANE IN INDIA (TONNES PER HECTARE)
S. No. States |
2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
1 Andhra Pradesh & Telangana |
65.0 | 51.0 | 45.2 | 54.1 | 55.5 | 48.2 |
| 2 Bihar | 66.0 | 61.0 | 49.0 | 49.6 | 65.9 | 66.0 |
| 3 Gujarat | 69.0 | 59.0 | 65.8 | 69.5 | 53.7 | 52.0 |
| 4 Haryana | 72.0 | 76.0 | 79.4 | 80.7 | 75.2 | 70.2 |
| 5 Karnataka | 91.0 | 92.0 | 99.5 | 116.5 | 102.5 | 92.3 |
| 6 Kerala & Goa | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 7 M. P. & Chhattisgarh | 74.0 | 66.0 | 68.6 | 78.5 | 74.4 | 80.0 |
| 8 Maharashtra | 85.0 | 77.0 | 97.1 | 107.6 | 80.1 | 79.2 |
| 9 Punjab | 86.0 | 69.0 | 78.0 | 82.1 | 81.8 | 77.0 |
| 10 Rajasthan | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 11 Tamil Nadu | 73.0 | 70.0 | 72.2 | 88.4 | 93.9 | 83.4 |
| 12 Uttar Pradesh | 71.0 | 70.0 | 67.9 | 67.2 | 68.6 | 63.6 |
| 13 Uttarakhand | 60.0 | 67.0 | 68.0 | 69.9 | 77.5 | 54.8 |
| 14 Others | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
All India |
75.3 | 71.1 | 76.0 | 82.7 | 75.7 | 71.2 |
| Source: ISMA |
Source: ISMA
From above, it can be seen All India average yield touched peak of 82.7 tonnes/hectare during 2021-22 but during 2022-23 it has come down to 75.7 tonnes/hectare and 71.2 tonnes/ hectare during 2023-24.
During 2023-24, all states have gone for dip in yield figures except 2 states i.e., Bihar and M.P.
During 2023-24, maximum drop in yield is observed in Uttarakhand at 29.3% as compared to last year, followed by A.P. at 13.15%, Tamil Nadu at 11.18%, Karnataka at 9.95%, U.P. at 7.29% and Maharashtra at 1.12%.
During 2023-24, All India average yield has come down from level of 75.7 to 71.2 which is drop of 5.94%. Maximum yield is observed in state of Karnataka at 92.3, followed by Tamil Nadu at 83.4, M.P. at 80.0, Maharashtra at 79.2.
Lowest yield is observed in state of Andhra Pradesh & Telangana at 48.2, followed by Gujarat at 52.0, Uttarakhand at 54.8 and then U.P. at 63.6.
So, there is a big scope of overall improvement in yield which is possible with better farm practice, replacement of old underperforming cane varieties with new potential ones, water conservation mechanisms.
Table 6: State-wise Recovery of Sugar in % of Cane
Year: Oct to Sept
State-wise Recovery of Sugar in % of Cane |
||||||||||||
| 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 (P) | |||||||
S. No. State |
Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol | Before Sugar diversion towards Ethanol | After Sugar diversion towards Ethanol |
| 1 Andhra Pradesh | 9.46 | 9.40 | 9.27 | 8.96 | 9.21 | 8.85 | 9.47 | 8.88 | 9.19 | 8.39 | 8.69 | 8.32 |
| 2 Bihar | 10.39 | 10.39 | 10.81 | 10.79 | 10.91 | 10.36 | 10.83 | 9.66 | 10.49 | 9.46 | 10.88 | 10.18 |
| 3 Gujarat | 10.82 | 10.82 | 10.75 | 10.75 | 10.25 | 10.22 | 10.64 | 10.52 | 10.73 | 10.70 | 10.37 | 10.37 |
| 4 Haryana | 10.40 | 10.36 | 10.58 | 10.58 | 10.26 | 10.26 | 9.86 | 9.47 | 10.04 | 9.70 | 9.96 | 9.72 |
| 5 Karnataka | 10.99 | 10.73 | 10.55 | 9.94 | 10.90 | 9.80 | 10.76 | 9.65 | 10.78 | 9.27 | 10.09 | 9.01 |
| 6 Kerala & Goa | 7.58 | 7.58 | - | - | - | - | - | - | - | - | - | - |
| 7 Madhya Pradesh | 9.95 | 9.93 | 9.93 | 9.89 | 9.79 | 9.38 | 10.24 | 9.41 | 10.25 | 9.06 | 10.37 | 9.57 |
| 8 Chhattisgarh | 9.64 | 9.64 | 9.68 | 9.68 | 11.09 | 11.09 | 11.55 | 11.55 | 10.89 | 10.89 | 11.68 | 10.86 |
| 9 Maharashtra | 11.40 | 11.27 | 11.54 | 11.28 | 11.20 | 10.50 | 11.18 | 10.38 | 11.21 | 10.02 | 11.01 | 10.32 |
| 10 Punjab | 10.17 | 10.14 | 9.62 | 9.59 | 9.52 | 9.02 | 10.18 | 9.29 | 9.73 | 9.70 | 9.49 | 9.38 |
| 11 Rajasthan | 9.18 | 9.18 | 8.03 | 8.03 | 7.42 | 7.42 | 8.43 | 8.43 | 7.11 | 7.11 | 8.48 | 8.48 |
| 12 Telangana | 10.79 | 10.65 | 10.63 | 10.22 | 10.50 | 10.33 | 11.17 | 10.77 | 10.78 | 10.66 | 10.65 | 10.65 |
13 Tamil Nadu & Pondicherry |
8.80 | 8.80 | 8.68 | 8.54 | 9.04 | 8.97 | 9.15 | 9.02 | 9.24 | 9.23 | 8.76 | 8.72 |
| 14 Uttar Pradesh | 11.48 | 11.46 | 11.63 | 11.29 | 11.45 | 10.78 | 11.19 | 10.04 | 10.82 | 9.54 | 11.21 | 10.61 |
| 15 Uttarakhand | 10.97 | 10.97 | 11.20 | 11.20 | 11.07 | 10.99 | 10.94 | 10.38 | 10.68 | 10.14 | 10.08 | 10.18 |
16 Others (Assam, Odisha, Nagaland, West Bengal) |
9.75 | 9.75 | 8.97 | 8.97 | 9.11 | 9.11 | 9.20 | 9.20 | 9.97 | 9.97 | 9.28 | 9.28 |
All India |
11.10 | 11.01 | 11.15 | 10.84 | 11.03 | 10.36 | 10.93 | 10.03 | 10.79 | 9.67 | 10.71 | 10.05 |
| Source: ISMA | ||||||||||||
Year Sugar Year (Oct-Sept)
It can be observed that All India average sugar recovery is continously coming down since year 2019-20 where it was 11.15 during 2019-20 to level of 10.71 during 2023-24.
During Year 2023-24, All India average sugar recovery (Gross) has been 10.71 as against 10.79 last year. During 2023-24, all 3 major sugar producing states have witnessed drop in sugar recovery figures as against last year.
Karnataka has seen a drop of 6.4%, Maharashtra drop 1.78% whereas U.P. state has seen improvement of 3.6% during 2023-24 as against last year.
During 2023-24, maximum gross sugar recovery is observed in state of Chattisgarh (a very small sugar producing state) at 11.68, followed by U.P. at 11.21, Maharashtra at 11.01.
Andhra Pradesh, Telangana and Rajasthan are lowest in sugar recovery at the level of below 9.0.
Going ahead, there is a sizeable scope for improvement of sugar recovery which can lead to a much bigger boost in sugar production.
All India Sugar Balance Sheet
Table 7: Domestic Production and Consumption
Unit: Million MT
Particulars |
2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
| Actual | Estimate | ||||||
A. Total availability – All India |
|||||||
| a) Opening Stock as on Oct 01 | 10.7 | 14.6 | 10.7 | 8.2 | # 7.0 | 5.6 | # 8.0 |
| b) Gross Production during season (before diversion towards Ethanol) | 33.7 | 28.2 | 33.2 | 39.0 | 36.6 | 34.1 | 29.9 |
| c) Diversion of Sugar towards Ethanol in form of B Heavy Molasses / Syrup | 0.5 | 0.8 | 2.0 | 3.2 | 3.8 | 2.1 | 3.5 |
| d) Net Production during season (after diversion towards Ethanol) | 33.16 | 27.41 | 31.19 | 35.76 | 32.82 | 31.96 | 26.4 |
| e) Imports | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Total supply availability |
43.9 | 42.0 | 41.9 | 43.9 | 39.8 | 37.5 | 34.4 |
B. Total Sugar Offtake - All India |
|||||||
| a) Internal consumption | 25.5 | 25.3 | 26.6 | 27.3 | 27.9 | 29.0 | 28.0 |
| b) Exports | 3.8 | 6.0 | 7.2 | 11.1 | 6.4 | 0.0 | 1.0 |
Total Offtake |
29.3 | 31.3 | 33.7 | 38.4 | 34.3 | 29.0 | 29.0 |
C. Closing Stock as on Sept 30 – All India |
14.6 | 10.7 | 8.2 | 5.5 | 5.6 | 8.5 | 5.4 |
D. Stock as % of Internal |
57.2 | 42.4 | 30.8 | 20.3 | 19.9 | 29.3 | 19.3 |
Consumption (%) |
# As reconciled with Government data Source: ISMA
Sugar Production
Out of gross sugar production of 29.9 million mt, it is estimated that there will be diversion of 3.5 million mt towards Ethanol which will give net sugar production of 26.4 million mt.
While ISMAs estimate of net sugar production is 26.4 million, AISTA estimate is 25.8 million mt, National Co-op. Sugar Fed. estimate is 25.9 million mt and other estimates are in range of 26.0 – 26.2 million mt.
Sugar consumption
On sugar consumption there is a debate as during the year 2023-24, sugar consumption was 29.0 million mt, during 2024-25 sugar consumption is pegged at 28.0 million mt, down by 1.0 million mt (3.4%). One of the explanations is that during 2023-24 around 0.8 million mt sugar has moved through porous borders to neighboring countries like Bangladesh which is not happening this year.
While Govt. and ISMA estimate for sugar consumption is 28.0 million mt, some of the agencies have pegged their number at 28.5 million mt.
Sugar exports
Government has given sugar export quota of 1.0 million mt during January month, against which physical movement of sugar is very slow.
As per trade till date, a quantity of around 0.5 million mt sugar has physically moved out of country and a quantity of 0.7 million mt has been contracted.
Date of swapping of export quota with domestic quota has lapsed on 31st March, date of shipment is till 30th Sept, and it is estimated that this export quota may not be utilized in full and a quantity of 1.0 – 2.0 Lac mt may get lapsed.
Policy initiatives by the Government Sugar
Policies of Government in past of promotion of Ethanol blending, promoting soft loan for creating new Ethanol capacity, differential ethanol pricing in line with the cost, Sugar exports, giving exports quotas, export assistance, Sugar MSP, giving monthly domestic release, buffer stock, etc. has helped the Sugar sector a lot and has totally solved the problem of Sugar surplus in system, lowered down Sugar stocks, cane arrears, cash flow issues with the industry.
Government has very efficiently manoeuvred the countrys balance sheet and has very timely allowed the usage of sugar including allowing exports, restricting exports so that Sugar is first available for domestic market, followed by blending in form of Ethanol and lastly for exports.
Both Central & State Government had also been working on improvement in performance parameters of Industry like Sugar recovery, yield, development of new variety, better farm practices, water conservation, sorting out logistics bottlenecks, trade efficiency, better relations between Sugar Mills & trade, working on all issues for supply of Ethanol to oil companies i.e., for wholesome improvement of Industry.
However, last 2 years Government is conservative in addressing the Sugar Industrys requirements like increase in MSP, increase in Ethanol prices in line with the cost, timely allocation of sugar export quotas, withdrawal of soft loan scheme for new Ethanol capacities, etc.
Given below is the snapshot of policy initiatives by the Government in last few years: -
I. SUGAR a) Promoting Exports of Sugar
It was a challenge for Government to increase Export of Sugar from the country in line with requirement of excess Sugar because of highly fragmented Industry, each state having its own problems, coastal and non-coastal states working under different conditions, logistics bottlenecks and lastly price mismatch between International and domestic price.
Furnished below is a snapshot since the Year 2018-2019 on Sugar exports where Government motivated the industry by giving export quotas to Industry and related assistance in different forms as under: -
Sugar Year 2018-2019
On 28th Sept 2018, Government announced Mandatory Export Quota of 5.0 million MT on All India basis to be exported during Oct 2018 – Sept 2019. The mandatory export quota of 5.0 million MT was allocated amongst all Sugar Mills in country basis their Sugar Production of last 3 years.
Further, to boost Sugar Exports and for the purpose of offsetting cost of cane, Government announced following financial assistance: -
Government announced to pay defraying expenses towards Internal transport, freight, handling, etc. to Sugar Mills on Export of Sugar as under: -
- 1.0 per Kg for Sugar mills within 100 kms from Port.
- 2.5 per Kg for Sugar mills beyond 100 kms from port in coastal states.
- 3.0 per Kg for Sugar Mills in Non-coastal states.
Financial assistance of 13.88 per quintal of cane on cane crushed during the Sugar Year 2018- 2019 subject to Sugar Mills complying with all the directives of Department of Food including exports quota and monthly release. The incidence of this financial assistance worked out to approx. 8.3 per kg on Sugar exported.
To facilitate and motivate Sugar exports, Department also decided to give additional Sale quota in domestic market to the ones exporting Sugar and reduce the domestic quota of the Sugar Mills not exporting Sugar.
Sugar Year 2019-2020
For the year 2019-2020, Government announced quota of 6.0 million MT Sugar exports on All India basis with export subsidy details as under: -
The Central Government agreed to provide an assistance @ 10448 per MT assistance for expenses on export of sugar to the sugar mills in the following manner:-
For marketing including handling, quality up-gradation, de-bagging & re-bagging and other processing costs etc. @ 4400 per MT.
For internal transport and freight charges including loading, unloading and fobbing etc.
@ 3428.0 per MT.
For ocean freight against shipment from Indian Ports to the ports of destination countries etc. @ 2620 per MT.
Total estimated assistance worked out to the tune of 6268.0 Crores by the Central Government for export of 6.0 million Tonne sugar.
Year 2020-2021
During the Year 2020-2021, Government announced Maximum Admissible Export Quantities (MAEQ) of 6.0 million MT and assistance of 6000 per MT as under: - For marketing including handling, quality up-gradation, debagging & re-bagging and other processing costs etc. @ 1600 per MT.
For internal transport and freight charges including loading, unloading & fobbing, etc. @ 2400 per MT.
For ocean freight against shipment from Indian ports to the port of destination countries, etc.
@ 2000 per MT.
Later during the Year in the month of May 2021, the said assistance was reduced to 4000 per MT due to improved International Sugar Prices.
No export assistance provided from Government after Year 2020-2021 till date.
Year 2021-2022
During the Year 2021-22, country achieved record sugar export of 11.1 million mt without any Government support and became the second largest exporter of sugar in world after Brazil.
Looking into excellent export parity from India and rising export numbers and to ensure sufficient availability of Sugar in domestic market, Government restricted Sugar exports and now allowing against specific export quotas.
On 24th May 2022, DGFT amended export policy of Sugar and put Sugar from "Free" category to "Restricted" category which initially valid till 31st October 2023.
It means that Sugar Export can be done against specific permission / quotas allowed by Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution.
Year 2022-2023
On 5th Nov 2022, Department of Food & Public Distribution allowed export quota of 6.0 million MT proportionately spread amongst all Sugar mills of country basis their average Sugar production during last 3 Sugar seasons. Country could export a quantity of 6.4 million mt during the year against the quota given.
Year 2023-2024
During the year, no sugar exports / quotas were allowed by Government and therefore no sugar exports happened from country.
Year 2024-2025
During January 2025, Government allowed export quota of 1.0 million MT prorated amongst All India sugar mills basis their production of last 3 years.
Pace of sugar exports is slow, and it looks like that this export quota may not be utilized in full and a quantity of 1.0 – 2.0 Lac mt may get lapsed.
b) Maintaining Sugar Price in market MSP (Minimum Selling Price of Sugar)
Due to high Sugar production during 2018 resulting into excess Sugar supply in market, Sugar prices across the country started coming down and had come down below the cost of Production. To arrest falling Sugar prices, Government fixed Minimum uniform selling price of Sugar at Mill level, across the country as under: ->
On 6th June 2018, Government approved fixing of Minimum Price of 29.0 per Kg for Sugar below which no Sugar Mill can sell in domestic market.
On 14th Feb 2019, Government increased MSP of Sugar from the level of 29 per Kg to 31 per Kg.
There has been no increase in MSP since Feb 2019 (more than 6 years now) and it is high time that Government should increase MSP in line with increasing cost in terms of cane price / other inputs to level of 42.0 per Kg which is also being pursued by Industry bodies. Further, it is suggested that Sugar MSP should be directly linked with FRP and for any increase in FRP, corresponding increase in MSP should come automatically.
c) Cane Price State Advised Price (SAP)
U.P. State Government always showed rationale in fixing cane price in line with the cost.
Sugar year 2020-21 had been 3rd consecutive year in a row when the Cane SAP in state of U.P. remained unchanged at level of 315 per quintal for common variety of Cane, 325 per quintal for early variety of cane and 310 per quintal for rejected variety of cane.
It was during 2021-22 that U.P. State Government increased Cane price by 25 per quintal as under:
| Early Variety | From 325 per quintal to 350 per quintal |
| General Variety | From 315 per quintal to 340 per quintal |
| Rejected Variety | From 310 per quintal to 335 per quintal |
| During 2022-23, U.P. State Government maintained the same price (SAP) of 2021-22 with no increase. | |
| During 2023-24, UP State Government increased cane price by 20 per quintal as under: - | |
| Early Variety | From 350 per quintal to 370 per quintal |
| General Variety | From 340 per quintal to 360 per quintal |
| Rejected Variety | From 335 per quintal to 355 per quintal |
During 2024-25, U.P. State Government maintained the same price (SAP) of 2023-24 with no increase.
Fixed & Remunerative Price (FRP):
For the Sugar Year 2021-22, Central Government had increased the Cane FRP by 5 per quintal from the level of 285 per quintal to 290 per quintal linked with 10% Sugar recovery.
For every 0.1 percent increase in Sugar recovery above 10 percent, a premium of 2.90 per quintal will be paid by Sugar Mills.
Also, the government has made a provision for reduction in FRP by 2.90 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10 per cent but above 9.5 per cent.
However, for mills having a recovery of 9.5 per cent or below, the FRP is fixed at 275.5 per quintal. For Sugar Year 2022-23, Central Government further increased FRP to 305 per quintal linked with 10.25% recovery.
for a basic recovery rate of 10.25%.
For Sugar year 2024-2025, the Government increased Cane FRP by 25 per qtl. to 340 per quintal for a basic sugar recovery rate of 10.25%.
For Sugar year 2025-2026, Government increased Cane FRP by 15 per qtl. to 355 per quintal for a basic sugar recovery rate of 10.25%, providing a premium of 3.46/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by 3.46/qtl for every 0.1% decrease in recovery. There shall not be any deduction in the case of sugar mills where recovery is below 9.5% and such farmers will get 329.05/qtl for sugarcane.
II. ETHANOL
The government, both Central & State, has taken number of favorable policy measures which ensured the creation of Distillation capacity in line with the blending requirements and supply of Ethanol. Ethanol blending has increased from supply of 188.6 crore litres during 2018-19 at 5.0% blending level to estimated supply of 1000 crore litres during 2024-25 at 20% blending level.
Today, 20% blending is continuing across the country and Oil companies have achieved average blending level of 19.78% during March 2025 month.
The supply and blending details of Ethanol from 2018-2019 as below:
Table 8: Ethanol supply and blending details
| ETHANOL ALLOCATION (CRORE LITRES) | ||||||||||||||
Ethanol Supply Year (Nov-Oct) |
C Mol. | B Mol. | Syrup Sugar | Sub Total - Sugar route | % Supply - Sugar | Damaged Grain | Surplus Rice | Maize Grain | Sub Total - Grain route | % Supply - Maize | % Supply - Grain | Total | Blending % | |
| 18-19 | 145.8 | 32.6 | 0.7 | 179.1 | 95% | 9.5 | 0.0 | 9.5 | 0.0% | 5% | 188.6 | 5.0 | ||
| 19-20 | 74.1 | 68.1 | 14.8 | 157.1 | 91% | 15.9 | 15.9 | 0.0% | 9% | 173.0 | 5.0 | |||
| 20-21 | Actual | 38.1 | 178.7 | 38.2 | 254.9 | 86% | 38.5 | 2.2 | 40.7 | 0.0% | 14% | 295.6 | 8.1 | |
| 21-22 | Supply | 10.1 | 249.4 | 80.3 | 339.8 | 83% | 22.6 | 45.8 | 68.3 | 0.0% | 17% | 408.1 | 10.0 | |
| 22-23 | 5.6 | 235.3 | 128.4 | 369.3 | 73% | 31.9 | 73.7 | 31.5 | 137.1 | 6.2% | 27% | 506.4 | 12.0 | |
| 23-24 | 57.8 | 148.6 | 63.9 | 270.3 | 40% | 115.7 | 0.0 | 286.5 | 402.2 | 42.6% | 60% | 672.5 | 14.6 | |
| Contracted / Allocated | 12.8 | 131.8 | 192.9 | 337.5 | 34% | 107.5 | 67.4 | 484.4 | 659.2 | 48.6% | 66% | 996.7 | ||
24-25 |
Supplied till | 4.5 | 37.4 | 139.2 | 181.0 | 49% | 27.3 | 5.0 | 156.2 | 188.5 | 42.3% | 51% | 369.5 | 18.36 till 31st |
| 31.03.2025 | Mar | |||||||||||||
| Supplied % | 34.9 | 28.4 | 72.1 | 53.6 | 25.4 | 7.5 | 32.2 | 28.6 | 37.1 |
State Government has extended various subsidies and benefits for creation of Distilleries more particularly in alcohol deficit states of Bihar, M.P., West Bengal, Jharkhand, etc.
The Central Government also adopted various policy measures for achieving required blending targets, details as under:
-a) Soft Loans for Ethanol – Central Government
To create new capacities, expansion of existing capacities, installation of incineration boilers, conversion to dual feed, etc. to reach blending target of 20%, Central Government has been allowing soft loans since June 2018 with interest subvention @ 6% or 50% of bank rate whichever is lower for a period of 5 years with one year moratorium period.
For stressed assets where a bank has issues in giving loans, there is a provision for a tri-partite agreement between Distillery, Oil company and the bank to motivate / push banks to give loans to such assets.
This scheme of soft loan was valid till April 2023 and currently no such scheme is in place. Government vide order dated 28.12.23 has fixed 30th June 2024 or 1 year period from loan approval whichever is later, to get loans disbursed from bank against past approvals failing which the in-principle approval for project will stand cancelled. Project should be completed within 2 years from the date of disbursement of 1st instalment of loan from bank.
During March 2025, Government has allowed scheme of soft loan with interest subvention @ 6% or 50% of bank rate whichever is lower to co-operative sector sugar mills for conversion of sugar-based feedstock ethanol plants to multi feedstock based plants including Maize and damaged food grains, so that these distilleries can easily run throughout the year.
b) Basic price of Ethanol fixed by Government linked with the cost
Earlier, the Government had system of procuring Ethanol through tender route with no basic price fixed by Government except brief period (Ethanol Year 2010-11 & 2011-12) where Government procured Ethanol at fixed interim basic price of 27.0 per Litre.
Since Dec 2014, to promote Ethanol, Government started giving fixed price of Ethanol linked with cost of Ethanol for Sugar Industry / Grain with details as under:
Table 9: Ethanol Price
Year |
Basic Ethanol Price ( / Litre) | |||||
(Dec-Nov) |
C Molasses | B Heavy Molasses | Cane juice / Syrup | Damaged Food grains | Surplus Rice – FCI | Maize |
| 2014-15 | 48.50 – 49.50 # | N/A | N/A | N/A | N/A | N/A |
| 2015-16 | 48.50 – 49.50 # | N/A | N/A | N/A | N/A | N/A |
| 2016-17 | 39.00 | N/A | N/A | N/A | N/A | N/A |
| 2017-18 | 40.85 | N/A | N/A | N/A | N/A | N/A |
| 2018-19 | 43.46 | 52.43 | 59.19 | 47.13 | N/A | N/A |
| 2019-20 | 43.75 | 54.27 | 59.48 | 50.36 | N/A | N/A |
| 2020-21 | 45.69 | 57.61 | 62.65 | 51.55 | 56.87 | 51.55 |
| 2021-22 | 46.66 | 59.08 | 63.45 | 52.92 | 56.87 | 52.92 |
| 2022-23 $ | 49.41 | 60.73 | 65.61 | 64.00 | 58.50 | 66.07 |
| 2023-24 | 56.28 | 60.73 | 65.61 | 64.00 | 58.50 | 71.86 |
| 2024-25 | 57.97 | 60.73 | 65.61 | 64.00 | 58.50 | 71.86 |
# Delivered Price to Oil Company depot, price range basis distance. $ Year is (Dec – Oct). ~ Year is (Nov – Oct).
During 2023-24, Government has given sizeable incentive on Ethanol price from C molasses, Damaged food grains and Maize as these feedstocks are being promoted.
During 2024-25, Government has not increased Ethanol price from any of the feedstocks except C heavy molasses Ethanol.
The government has not given any price increase for Syrup Ethanol and B heavy molasses Ethanol since last 2 years which is a deterrent for sugar Industry.
c) Amendment in IDR Act
During May 2016, there had been an amendment in IDR Act, 1951 as per which State Government can control, levy taxes / duties on liquor meant for human consumption only and not Ethanol, Denatured Alcohol, Industrial Alcohol for Industrial use.
It means Ethanol and denatured spirit have come out of the purview of State Govt. with no power left to regulate or impose any fees / taxes / duties on Ethanol by State Government.
Many states have relaxed state excise process like Karnataka, Gujarat, Punjab, Haryana, Maharashtra, M.P., Chattisgarh, Bihar, etc.
Industry had to take legal recourse also to get waiver of State Excise import fees of various states like in state of Haryana, Punjab and Delhi, export permit fees in state of U.P.
While the U.P. state has stayed Export permit fees of 1.0 per Liter as matter is sub judice in Supreme court, it is still charging license fees / denaturation fees. In fact, U.P. state has increased license fees from 0.15 per litre to 0.30 per litre and then to 0.50 per litre and denaturation fees from 0.15 per litre to 0.50 per litre and then to 0.60 per litre, w.e.f. 1st April 24.
Government and Industry Associations continue to take up State Governments / Excise department of states like U.P., Rajasthan, Delhi & West Bengal which are still imposing state excise documentation / processes / fees and U.P. state is one of them.
However on 23 October 2024, the Supreme Court upheld state governments power to regulate industrial alcohol in an 8:1 majority by holding that the term "intoxicating liquor" in entry 8 of list II (State list) of the Seventh Schedule of the Constitution will include industrial alcohol.
d) Exemption of central excise duty on ethanol
On April 29, 2015, the Cabinet allowed exemption of Central excise duty on ethanol from sugar season 2015-2016, which was applicable @ 18%.
This benefit continued till 30th June 2017.
e) Reduction in GST
On July 21, 2018, Government reduced GST on Ethanol from earlier level of 18% to 5% in order to boost Ethanol sector. Other grades of Alcohol, for Industrial use / for making liquor still carrying GST @ 18%. GST on Molasses which is main raw material for production of Ethanol has also been reduced from 28% to 5%.
f) Exemption of custom duty on Industrial Alcohol
In the financial year 23-24 budget, Government has exempted custom duty earlier applicable 5% plus cess of 10% on duty, on Denatured Ethyl Alcohol used in chemical Industry which is in support of the Ethanol Blending Program and facilitate Governments endeavour for energy transition.
g) Ban on import of Alcohol for blending purpose
Government has been allowing import of Alcohol for making chemicals / industrial usage only and not for blending.
For blending, Government is allowing only indigenous Alcohol / Alcohol made from indigenous sources only.
In fact, import of hydrous Alcohol / molasses for further processing to Anhydrous Ethanol for blending purpose is also restricted.
h) Additional Basic Excise Duty @ 2 per Liter levied on sale of unblended petrol
Since 1st November 2022, there has been applicability of additional excise duty @ 2.0 per Litre on Oil companies on sale of unblended petrol which has been introduced to promote Ethanol blending with petrol.
i) Priority of Syrup Ethanol followed by B heavy Molasses
Priority of Oil companies is to procure Ethanol available within the state and then if still left with the requirement, they procure it from other states.
For procurement within the state (to promote manufacturing of Ethanol from Syrup and B heavy), Oil companies give priority to Dedicated Ethanol plants then Syrup Ethanol which is followed by B heavy Molasses Ethanol and then C Molasses/Grain Ethanol.
j) Increase in Ethanol storage capacity
Oil companies have significantly increased Ethanol storage capacity at their depot levels which helps in fast decantation of lorries with lower detention and provides buffer for continuous blending during off-season when ethanol supplies slow down.
k) Fast payments
Now, with automation of systems / online software support at Oil companies end, since last 3-4 years, Oil companies are releasing fast payments where we get our payments on an average in 30 days time as against earlier release of payments in 35 - 40 days time.
It is expected that in times to come this payment time will further come down to 21 days on average basis.
l) Dedicated Ethanol plants
During September,21, to promote creation of new capacities in Ethanol deficit states, Oil companies came up with the offer of dedicated Ethanol plants for new potential parties interested in setting up Distilleries.
Contract with dedicated plants is such that these plants must be ready in a time bound manner as agreed with oil companies and for such successful project proponents, Oil companies have assured guaranteed purchase / lifting of their production.
m) Eased Tender conditions
Eased tender conditions like one time submission of documents, quarterly bank guarantees, multiple transportation rate slabs, transportation rates being linked to retail selling price of Diesel, long term registration of units.
From Ethanol year 2020-21, Security amount was reduced from 5% to 1% of order value and Penalty (Price reduction clause) for non-supply of Ethanol / delayed supply also reduced from 5% to 1% of basic price, to promote ethanol blending.
However, since the Ethanol year 2022-23, security deposit and penalty has increased from 1% to 3% to prevent defaults against supply orders.
n) Ethanol supply by Rail wagons / pipeline
Oil companies have started transporting Ethanol blended petrol to far flung states by rail rakes / pipeline to save logistics cost. In northern India such arrangement has been started at Mathura, Panipat and Kanpur depot.
Such a movement is of help for distilleries also as it reduces their long-distance movement of ethanol and helps with cost savings.
o) Start of 20% blending
Oil companies started 20% blending across the country and during March 2025 the average blending has been 19.78%.
As per reports, the Government is considering launching Flexi Fuel Vehicles (FFVs) which can take higher percentage Ethanol blend and will aid in increasing Ethanol demand.
III. Policy requirements for Industry
a) Viable Price of Ethanol from Sugar route – Sugar Syrup / B heavy
There is a need to rationalise Ethanol price from B heavy & Syrup as current Ethanol prices have not been increased since last 2 years and are not viable.
The current Sugar Syrup Ethanol basic price is 65.61 per Liter and B heavy Ethanol price is 60.73 per Litre and there are various proposals from the Industry Association to align it in line with the cost.
Ethanol price from Syrup/ B heavy was last increased during the year 2022-23 when Cane FRP was 305 per qtl. which now has been increased by 16.4% to level of 355 per qtl for the Sugar Year 2025-2026. For the year 2025-2026, Ethanol price should be increased in line with the cane price increase and considering other inflationary factors.
b) Increase in Sugar MSP
There has been no increase in Sugar MSP since Feb 2019 (more than 5 years now) when it was fixed at 31 per Kg. After that various input costs including Cane price has increased significantly. Sugar MSP was last increased during year 2019 when Cane FRP was 275 per qtl for 10.0% recovery which has been increased by 25.9% to level of 355 per qtl for 10.25% recovery for the Year 2025-2026.
It is high time that Government should increase MSP in line with increasing cost in terms of cane price / other inputs to level of Min. 42 per Kg which is also being pursued by various Industry bodies.
IV. Bajaj Hindusthan Sugars (BHSL) Position
BHSL has 14 sugar plants having an aggregate crushing capacity of 136000 TCD, 6 distilleries with an aggregate capacity of 800 KL/day and about 151 MW of surplus power.
Key risks and concerns
1. Raw material
BHSL has continued its thrust on cane quality promotion and is continually investing in cane variety development. Over the last many years, the results of continued investment in Cane development are visible in the form of increased availability of better variety of cane and better Sugar recovery, results as under:
Sugar Season (Oct – Sept) Sugar recovery
Sugar Season (Oct – Sept) |
Sugar recovery |
| 2014-2015: | 09.41% |
| 2015-2016: | 10.37% |
| 2016-2017: | 10.26% |
| 2017-2018: | 10.72% |
| 2018-2019: | 11.52% |
| 2019-2020: | 11.61% |
| 2020-2021: | 11.01% |
In the above table, the efforts of the Group are clearly visible towards Cane development and quality promotion and Sugar recovery has improved by almost 23.4% from the level of 9.41 during 2014-15 to level of 11.61% during 2019-20.
From the year 2020-2021 onwards, BHSL has started producing B heavy Molasses/ Sugar syrup because of which while Sugar recovery has come down, group shall be producing more Ethanol for which price for Syrup Ethanol / B heavy slot is applicable which is higher than C Ethanol in line with the cost.
BHSL sees cane development as a major thrust area to improve the revenue generation and is continuously striving towards it and every possible effort is made to increase availability of good quality cane for crushing.
The major area of concern is the ability to make timely cane price payments to farmers which is affecting the availability of cane to Group.
2. Sugar price risk
While cane prices are fixed by the state government, sugar realisations are totally market driven and are dependent on demand supply dynamics. This at times led to a complete mismatch between the cane price and sugar realisations.
To mitigate the said Sugar price risk, Government had fixed Minimum Selling Price (MSP) of Sugar earlier at level of 29.0 per Kg and now at the level of 31.0 per Kg below which no Sugar Mill can sell Sugar in market.
Industry Associations have represented to Government for increasing MSP to levels of 40 – 42 which is in line with increased cane cost and understandably it is under consideration at Government end.
Further, a sizeable portion of cane / sugar is going towards manufacturing of Ethanol in varied proportion as per market dynamics for which Government gives fixed price in line with the cost for the industry. However, for B heavy / Syrup Ethanol, Government has not increased price since last 2 years for which Industry Associations are representing to Government.
So, while there is a Sugar Price risk there is Government intervention / control to mitigate this risk.
3. Regulatory risk
The sugar industry is subject to many regulatory risks like environment, raw material pricing, government policies, etc. The biggest risk to the business is the disjointed sugarcane price fixed by the state government.
However, to ensure liquidity and financial health for Industry, both Central & State Government keeps on providing policy and subsidy support to enable Sugar Mills to pay fixed cane price as fixed by the Government.
For Ethanol business, the Government has introduced amendment in IDR amendment as per which State Government can no longer regulate Alcohol meant for industrial use. Number of states have given up / relaxed their control of Ethanol supplies.
4. De-risking strategy
As part of our business strategy, we are rapidly de-risking our business with the investment in power generation capacity. This business is non-cyclical and therefore expected to generate steady cash flows year on year.
From Sugar Year 2020-21, we have started diverting Sugar for manufacturing Ethanol in form of B heavy Molasses / Sugar syrup in varied proportions depending upon market dynamics which will reduce Sugar production and help in achieving higher production of Ethanol.
Sustained Ethanol supplies to Oil companies have provided some element of risk mitigation. While diverting sugar to Ethanol, we keep track of market dynamics and as current Ethanol prices from B Heavy and Syrup Ethanol are not viable, we kept our sugar diversion towards Ethanol at minimal levels.
5. Market share of BHSL in U.P. and on All India basis for Sugar basis Production – Net Sugar Table 10: Market share of BHSL in U.P. and on All India basis for Sugar basis Production Year: Oct – Sept
Particulars |
Unit | 2024-25 | 2023-24 | 2022-23 | 2021-22 | 2020-21 | 2019-20 | 2018-19 |
| (estimated) | ||||||||
| BHSL Production | Million MT | 1.20 | 1.35 | 1.29 | 1.28 | 1.53 | 1.94 | 1.83 |
| UP Production | Million MT | 9.30 | 10.41 | 10.48 | 10.20 | 11.06 | 12.64 | 11.82 |
| All India Production | Million MT | 26.40 | 31.95 | 32.81 | 35.75 | 31.18 | 27.40 | 33.15 |
| BHSL % of UP | % | 12.86 | 12.93 | 12.31 | 12.55 | 13.83 | 15.35 | 15.48 |
| BHSL % of All India | % | 4.53 | 4.21 | 3.93 | 3.58 | 4.91 | 7.08 | 5.52 |
6. Sugar market spread - All units of BHSL
Bajaj Group (Bajaj Hindusthan Sugar Limited) has 14 units evenly spread throughout the State of Uttar Pradesh with 5 sugar mills in Western U.P., 5 in Central UP and 4 in Eastern U.P.
The Zone-wise details and the crushing capacity of the mills are as below:
Table 11: Zone-wise details of crushing capacity |
||
ZONE |
NO. OF MILLS | CRUSHING CAPACITY (TCD) |
| WEST | 5 | 48,000 |
| CENTRAL | 5 | 48,000 |
| EAST | 4 | 40,000 |
TOTAL |
14 | 136,000 |
Markets
West U.P.: Sugar produced by our West UP mills is sold in the region of West UP and neighbouring States in Northern India like Punjab, Haryana, Himachal Pradesh, Rajasthan and Delhi etc.
Central U.P.: Sugar produced in our Barkhera and Maqsoodapur mills is sold partly in the Central U.P. and in nearby states i.e., Rajasthan, M.P., Gujarat, North-East states and at times to Haryana, Orissa. The sugar produced by Gola, Palia and Khambarkhera mills is sold in Central UP, East UP, Bihar, Bengal, Jharkhand, M.P. and North-East States.
East U.P.: Sugar produced by our East UP Mills is sold in the region of Eastern UP and states like Bihar, Jharkhand, West Bengal, Assam and North-East States.
We have brought down our sugar sale by Rail rakes to North-East States of West Bengal, Assam etc. and are pushing our sale by Road route which gives us better sale realization.
Institutional buyers: Company is increasing its focus on Sale of Sugar to Institutional buyers and now have Food Safety System Certification (FSSC) 22000 license in 4 Sugar units i.e. Kinauni, Gangnauli, Barkhera and Kundarkhi unit and selling Sugar to Institutional buyers like Pepsi (Varun Beverages), Wrigley, Walmart, ITC, Dabur, Hamdard, Reliance, Udaan etc.
Competition
Other than the mills in state of UP, we face competition mainly from mills in the state of Maharashtra, Karnataka, Gujarat, A.P., Tamil Nadu. For the movement of sugar to neighboring states like Punjab, Haryana, Bihar, our sugar mills face competition from mills in these states, as well. Sugar sales market reach / penetration is purely based on the price parity and Quality with competing mills. Sugar Mills are focusing on Quality of Sugar in terms of color (ICUMSA), Grain size, luster, etc., number of mills converting from sulphitation sugar to refined sugar which is giving edge to such good quality sugar in competition.
No competition from Sugar imports
Since Sugar imports are not viable and not happening there is no competition from Imported Sugar.
V. Internal Control System and their Adequacy
Internal Control System can be defined as "The plan of organization, methods and procedures adopted by the management of an entity to assist in achieving managements objective of assuring, the orderly and efficient conduct of its business, adherence to management policies, safeguarding of Companies assets, prevention and detection of fraud and errors, completeness and accuracy of accounting records, and the timely preparation of reliable financial Information". An effective Internal Control system in an Organization provides reasonable assurance to the management and stakeholders about effectiveness of its policies, processes, tasks, behaviours etc. It helps in ensuring the quality of Internal and external reporting, compliance with applicable laws, rules and regulations and in identification and analysis of various associated risks like Process, Regulatory, Market, Financial risks etc. and helps the management in designing and implementing a suitable action plan to avoid / overcome such risks. Your Company has an Internal Control system commensurate with its size of business and nature of its operations. BHSL has in place an adequate system of Internal Controls designed to ensure that all the transactions are authorised, recorded and reported correctly. The Company also has in place a well-defined Delegation of Power (DOP) and various Standard Operating Procedures (SOPs) covering different areas and processes which further strengthens Internal Control. BHSL has a strong and Independent Internal Audit department which reports to the Audit Committee of the Board to maintain its objectivity and independence. The reports of the Internal Audit department are sent to concerned Departmental Heads responsible for taking corrective actions. Significant Audit observations and corrective action thereon are reviewed by management and subsequently placed before the Audit Committee of the Board of Directors along with the action plan recommended by respective Functional Heads. The directions of the Audit Committee are implemented by the respective Head of the Departments and action taken reports are placed before the Audit Committee members in next meeting for their perusal.
VI. Human Resources/Industrial Relations
Over the past year, Bajaj Hindusthan Sugar Limited (BHSL) has sustained harmonious and constructive industrial relations across all Sugar Mills and the Head Office. We remain steadfast in our commitment to nurturing a progressive organizational ethos—one that empowers our employees to flourish within a culture of inclusivity, transparency, and shared purpose, in alignment with our "Group Vision – Think Tomorrow." It is our aspiration for BHSL to be recognized as an industry benchmark, propelled by a robust Human Resource (HR) framework that seamlessly integrates innovative strategies with well-aligned HR processes and systems. To this end, our HR policies are subject to continuous evaluation, refinement, and enhancement, ensuring their ongoing relevance, efficacy, and mutual value for both our employees and the organization.
Our foremost objective is the effective and transparent execution of these policies across all levels of the Company. As of March 31, 2025, BHSL is proud to employ a dedicated workforce of 7,189 individuals. The following section outlines the key HR initiatives and strategic undertakings accomplished during the past financial year:
Training Programmes
Training & Development - In the fiscal year 2024 25, the Human Resources Department spearheadedacomprehensivesuiteoftraininganddevelopmentprograms,effectivelyharnessing internal expertise to build organizational capability. Through meticulous planning, a structured six-month training calendar was developed, with sessions thoughtfully scheduled during off-peak operational periods. This approach, executed in close coordination with all departments, ensured maximum relevance, participation, and alignment with functional priorities. Upon finalization, the training calendar—including session topics and nominated participants—was formally communicated to all stakeholders. Each session witnessed an average participation of 28 to 32 employees, reflecting strong engagement across the organization. The training were imparted by external as well in-house faculties, which spanned a diverse range of critical and operationally pertinent topics. The topics/areas covered included SAP Module, Boiler Operations, Fire Safety, Awareness about DCS systems, MS Outlook, MS Excel, Electrical Safety, Top borer and its control, Operations of Batch type Centrifugal Machine, Ratoon management, Emergency response procedure, Working of PAN condensers, Mill Settings, Role of Juice Clarifier in clarification, General instructions about efficiency improvement at work, Instrumentation & control in sugar industry, Major Insects & Pests of sugarcane and its control, Major diseases of sugarcane and its control, Sugarcane Productivity, Cut to crush management, PPE, Types of bearings and their uses, Design & Operation of juice heater, Cane handling & cane preparation, LOTO, ZLD in distillery, TTT, Steam Economy, Working of Continuous Pan, Deaerator Operations, Powerhouse operation & maintenance, Root cause of boiler tube failure, Types and uses of Valves, Sugar ETP Operation and Maintenance, Work Permit System, Working of Ion exchange column, MEE, Distillery- Boiler operations and maintenance, Rotary vacuum filter, Autumn intercropping of cane, Mechanical circulators, Molasses handling & preservation, Importance of Intercropping with Sugar Cane Cultivation, Fermentation, Condensate Polishing Unit, General Safety Awareness, Effluent Management in Distilleries, Material balance, Chemical saving & Process hazards, Wealth Awareness Program, Distillery process management, Evaporator- Fouling of heating surface and cleaning methods, DM Plant, PLC & DCS System, Slop fired boiler, Distillation, Chemical Hazards, Reverse Osmosis, Safety Management System. These initiatives underscore our unwavering commitment to cultivating a competent, agile, and safety-conscious workforce—equipped not only to meet current challenges but also to drive the long-term strategic objectives of the organization.
Induction Program for New Employees - Induction programs are regularly being conducted at unit level, as well as, in offices by HR department for all new employees. This is an interactive program, supplemented by power-point presentation, about the Company.
Activities and Events - As a part of Employees Engagement Programmes, religious, cultural, national integration programmes were conducted, e.g. Birthday celebration, New Year get-together, Annual function of Holi Milan, Shivalya Temple, Janmashtami, Dussehra, Diwali, Teej, Lohri festival, New Year celebrations, Republic Day, Independence Day, Vishwakarma Day, Environment Day, Safety Week (March 4 to 10), Jamnalal Bajaj ji Jayanti (Nov. 4), Labour Day (May 1), various type of children events like Drawing Competition, Annual Picnic & Excursion Tours etc.
Corporate Social Responsibility
1. Bajaj Public School (BPS) - (affiliated to CBSE): In alignment with the guiding principles of the Groups Corporate Social Responsibility (CSR) philosophy, the establishment of Bajaj Public School (BPS) reflects a visionary response to the critical need for providing high-quality education at an affordable cost to the children of local communities. BPS, a not-for-profit institution, was founded in 2009 to fulfil this imperative, and has since expanded its presence with branches in Maqsoodapur, Gola, Palia, Barkhera, Kinauni, Gangnauli, Bilai, Utraula, and Lalitpur. To date, BPS has undertaken the responsibility of nurturing the young and impressionable minds of approximately 1,500 students. Functioning as a vibrant hub of learning and holistic development, the school has also become a source of livelihood for over 140 individuals, including the spouses of company employees. BPS remains steadfast in its mission to connect, grow, serve, and continually strive towards new horizons in education and community development. In furtherance of the guiding philosophy of the Corporate Social Responsibility (CSR), the group visualised the dire need to impart high standard education at low cost to the wards of the inhabitants. The Bajaj Public School is a non-profit making organization, is an outcome to fulfil the said need. It was incorporated during 2009 and now it has branches in Maqsoodapur, Gola, Palia, Barkhera, Kinauni, Gangnauli, Bilai, Utraula and Lalitpur. BPS has so far taken responsibility to nurture positively the delicate and tender minds of approx. 1,500 students. School is running as a creative centre for learning and development. It has provided employment to more than 150 people, including the spouses of the employees. BPS solely aims to continuously connect, grow, serve and reach new horizons.
2. Other activities a) Woollen clothes & Blanket distribution, among the under-privileged class of surrounding areas. b) Kanwar Seva Shivir on Mahashivratri Parv. c) Distributing Organic Manure on subsidized rates to the farmers, safety glasses were also distributed to farmers. d) In winters, lighting Alao at every Chauraha by distributing bagasse. e) Health check-up camps by local hospital were held at offices & units, wherein a team, comprising of specialized Doctors i.e. Medicines & Eye, conducted medical check-up. The employees and their families got themselves checked and benefited from this health camp. Among the other beneficiaries, there were various outsiders, farmers also.
VII. Financial Analysis of Operations of the Company
The financial results for the year under review from April 01, 2024 to March 31, 2025
Table 12: Operational data
| Unit | Year ended | Year ended | |
| March 31, 2025 | March 31, 2024 | ||
| Cane Crushing | MMT | 11.320 | 12.819 |
| Sugar Recovery | % | 10.51 | 10.89 |
| Sugar Production – From Cane | MT | 11,90,281 | 13,93,171 |
| Industrial Alcohol Production | KL | 1,07,757 | 1,78,121 |
| Molasses Production – C | MT | 5,22,733 | 5,23,678 |
| Molasses Production – B-Heavy | MT | Nil | 72,832 |
| Power Generation | 000 Units | 6,21,994 | 7,22,987 |
During the year, the production of sugar from sugarcane was at 11,90,281 MT as compared to 13,93,171 MT during the previous year. The production of molasses-C was at 5,22,733 MT and molasses B-heavy was at Nil MT as compared to 5,23,678 MT molasses-C and 72,832 MT molasses B-heavy in the previous year. The industrial alcohol / ethanol production was at 1,07,757 KL as compared to 1,78,121 KL in the previous year. Power generation was at 621.99 Million Units (MUs) as compared to 722.99 MUs in the previous year. Average recovery of sugar from sugarcane 10.51% during the current year as compared to 10.89% in the previous year.
Results of operations
Table 13: Summarised financial results
Crore
Particulars |
Year ended March 31, 2025 | Year ended March 31, 2024 |
| Revenue | 5,559.39 | 6,089.37 |
| Earnings before interest depreciation and tax (EBIDTA) | 311.02 | 272.67 |
| Finance Costs (Net) | 95.94 | 155.70 |
| Cash profits | 215.08 | 116.97 |
| Depreciation & amortisation | 210.70 | 212.87 |
| Profit/(Loss) before tax | 4.38 | (95.90) |
| Tax expenses | - | (4.37) |
| Profit/(Loss) after tax | 4.38 | (91.53) |
| Basic and Diluted earnings per share () | 0.04 | (0.74) |
Turnover
During the year ended March 31, 2025, the Companys total revenue was 5,559.39 crore as against 6,089.37 crore in the previous year.
Analysis of sales
During the year, the Company sold 12,13,123 MT of sugar as against 13,33,980 MT during the previous year. The Company sold 1,28,918 MT of molasses as against 80,379 MT in the previous year. However, alcohol/ethanol sales during the year was at 1,20,410 KL as against 1,52,719 KL during the previous year. The Company exported 157.34 MUs of power during the year as against 185.63 MUs during the previous year. Product-wise sales quantity, value and per unit realisation details are given in Table 14:
Table 14: Sales revenue
| Year ended March 31, 2025 | Year ended March 31, 2024 | ||||||
Particulars |
Unit | Qty | Value | Realisation* | Qty | Value | Realisation* |
| Crore | /MT/KL/ 000 | Crore | /MT/KL/ 000 | ||||
| Units | Units | ||||||
| Sugar | MT | 12,13,123 | 4,656.12 | 38,381.27 | 13,33,980 | 5,020.63 | 37,636.65 |
| Alcohol/ Ethanol | KL | 1,20,410 | 682.42 | 56,674.56 | 1,52,719 | 868.65 | 56,879.25 |
| Molasses | MT | 1,28,918 | 19.60 | 1,520.00 | 80,379.19 | 12.63 | 1,570.80 |
| Power | 000 Units | 1,57,336 | 53.48 | 3,399.33 | 1,85,630 | 62.96 | 3,391.75 |
Industrial alcohol was sold in the local market directly to end users, mainly alcohol-based chemical plants. Ethanol was sold to oil companies, who use it for blending with gasoline.
The other operating revenue includes, sale of pesticides of 38.03 crore, sale of scrap of 9.92 crore, lease rent income of 6.21 crore and other miscellaneous operating income of 8.33 crore.
Other income
Other income for the current year was 15.04 crore (including interest income of 1.35 crore, and other miscellaneous income was at 13.69 crore) as against 12.81 crore (including interest income of 1.47 crore, and other miscellaneous income of 11.34 crore) in the previous year.
Other expenses
During the year, other expenses were 457.10 crore as against 552.99 crore in the previous year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
The EBIDTA for the current year at 311.02 crore as against 272.67 crore in the previous year.
Finance costs
Finance cost for the current year was 95.94 crore as against 155.70 crore in the previous year, due to repayments of loans.
Depreciation and amortisation
The depreciation for the current year was at 210.70 crore as against 212.87 crore in the previous year.
Tax expenses
No provision for current tax has been made in the current year; previous year deferred tax income was 4.37 crore.
Balance sheet
The summarised balance sheet as at March 31, 2025 is given in Table 15.
Table 15: Summarised balance sheet
Crore
As at |
March 31, 2025 | March 31, 2024 |
ASSETS |
||
Non-current assets |
||
Fixed assets |
||
| Property, plant and equipment | 6,188.91 | 6,390.54 |
| Right of use assets | - | 0.03 |
| Capital work-in-progress | 8.61 | 4.00 |
| Intangible assets | 0.11 | 0.00 |
| Non-current investments | 3,627.97 | 3,685.25 |
| Other non-current financial assets | 5.76 | 11.25 |
| Other non-current assets | 111.85 | 90.86 |
Sub total |
9,943.21 | 10,181.93 |
Current assets |
||
| Inventories | 2,677.22 | 2,715.56 |
| Financial assets | ||
| Trade receivables | 105.05 | 151.77 |
| Cash and cash equivalents | 65.34 | 48.15 |
| Other bank balances | 0.00 | 0.00 |
| Loans | 1,643.25 | 1,643.25 |
| Current tax assets (net) | 6.60 | 12.40 |
| Other current assets | 661.79 | 657.15 |
Sub total |
5,159.25 | 5,228.28 |
Total assets |
15,102.46 | 15,410.21 |
EQUITY AND LIABILITIES |
||
Shareholders Fund |
||
| Equity | 124.45 | 124.45 |
| Other equity | 4,236.42 | 4,368.53 |
Sub total |
4,360.87 | 4,492.98 |
As at |
March 31, 2025 | March 31, 2024 |
Non-current liabilities |
||
| Financial liabilities | ||
| Borrowings | 3,494.63 | 3,493.41 |
| Provisions | 112.59 | 100.75 |
| Deferred tax liabilities (net) | 994.39 | 922.26 |
| Other non-current liabilities | - | - |
Sub total |
4,601.61 | 4,516.42 |
Current liabilities |
||
| Financial liabilities | ||
| Borrowings | - | 275.88 |
| Lease liabilities | - | 0.03 |
| Trade payables | 3,520.01 | 3,550.56 |
| Other financial liabilities | 103.83 | 52.32 |
| Other current liabilities | 2,489.05 | 2,494.24 |
| Short-term provisions | 27.09 | 27.78 |
Sub total |
6,139.98 | 6,400.81 |
Total equity and liabilities |
15,102.46 | 15,410.21 |
Share capital
There was no change in share capital during the year.
Other equity
Other equity has decreased to 4,236.42 crore as at March 31, 2025 from 4,368.53 crore as at March 31, 2024 mainly due to decrease in fair Value of Investments net of Deferred tax (129.41) Profit for the Year 4.38 crore, change in Other Comprehensive Income on actuarial valuation of deemed employee benefit (5.06) crore and transfer to reserve for molasses tank (2.02) crore.
Non-current borrowings
Long-term borrowings was at 3,494.63 crore as at March 31, 2025 as against 3,493.41 crore in the previous year ended March 31, 2024.
Current borrowings
Current maturity of Long-term borrowings was at nil as at March 31, 2025 as against 275.88 crore in the previous year ended March 31, 2024.
Property, plant and equipment
Gross Block has decreased to 10,671.68 crore from 10,672.03 crore, on account of routine capitalization/ decapitalization during the year. The net block stood at 6,189.02 crore as against 6,390.57 crore in the previous year.
Investments
Investment was at 3,627.97 crore as at March 31, 2025 as against 3,685.25 crore in the previous year ended March 31, 2024. The changes are mainly due to fair valuation of investments of Phenil Sugar Limited, Bajaj Power Venture Pvt. Ltd, Lalitpur Power Generation Co. Ltd.
Inventories
The inventory of sugar at the end of the current year was 6,06,700 MT equivalent to 183 days sales as compared to 172 days sales in the previous year. Alcohol inventory at the end of the current year was 21,728 KL equivalent to 66 days sales as compared to 84 days sales in the previous year.
In view of expected volume growth, the inventory liquidation is monitored very closely and the Company does not foresee any difficulty in selling the products manufactured by it.
Debtors
The debtors at the end of the current year were equivalent to 7 days of sales as compared to 9 days of sales in the previous year ended March 31, 2024. All the debtors are good and realisable.
Significant non-recurring income, expenditure and other items Income
Provision no longer required 2.10 crore, credit balance appropriated 4.65 crore Credit and miscellaneous receipts 2.21 crore Credit were of a non-recurring Income in nature. 0.62 Crore debit Provision for bad debts is non-recurring expense.
Income
The Gain on assets sold 0.09 crore is of a non-recurring nature.
Contingent liabilities
The status of contingent liabilities as at March 31, 2025 has been reviewed by the management. Efforts are being made for speedy settlement of pending cases.
Ratios
Comparative analysis of Important Ratios with variance is tabulated below:
Description |
Ratio | Ratio | Variance | Reasons for significant variance |
| (Current Year) | (Previous Year) | (%) | ||
| Debtors Turnover Ratio | 43.29 | 41.49 | 4.33% | Trade Debtor Realised |
| Inventory Turnover Ratio | 2.10 | 2.34 | -10.26% | Decrease in turnover |
| Interest Coverage Ratio | 3.28 | 1.77 | 85.31% | Repayment of Loan |
| Current Ratio | 0.84 | 0.82 | 2.44% | No major movements |
| Debt Equity Ratio | 0.80 | 0.84 | 4.76% | Repayment of Loan |
| Operating Profit Margin Ratio | 1.81% | 0.98% | 84.70% | Better Operational Performance |
| Net Profit Margin Ratio | 0.08% | -1.59% | 105.03% | Better operational performance |
| Return on Net Worth | 0.10% | -2.04% | 104.90% | Better operating Performance |
Operating margin in the current year as compared to previous year improved due to better realization of sugar / Ethanol.
Control measures for cane procurement
Besides the smooth functioning of plants, timely and regular procurement of sugarcane is the most important activity of the Company. Continuous efforts are being made to ensure systematic indenting, procurement and crushing of sugarcane. Though the current systems are adequate, as a matter of routine, these systems are periodically reviewed by the senior management team from time to time and corrective measures, if and when considered necessary, are taken to ensure the smooth flow of sugarcane.
Unit-wise operations Sugar division
Crushing details of plants during the year ended March 31, 2025, are given in Table 16:
Table 16: Cane crushing, sugar recovery and sugar production
Plant Location |
Zone |
2024-25 | 2023-24 | ||||
| Cane | Sugar | Sugar | Cane | Sugar | Sugar | ||
| Crushing (MMT) | Recovery (%) | Production (Tonnes) | Crushing (MMT) | Recovery (%) | Production (Tonnes) | ||
| Gola Gokarannath | Central UP | 1.380 | 10.30 | 1,42,115 | 1.543 | 10.84 | 1,67,202 |
| Palia Kalan | Central UP | 0.893 | 10.62 | 94,861 | 1.213 | 10.93 | 1,32,500 |
| Khambarkhera | Central UP | 0.942 | 10.84 | 1,02,106 | 1.059 | 11.07 | 1,13,715 |
| Barkhera | Central UP | 0.451 | 9.42 | 42,501 | 0.572 | 10.22 | 58,451 |
| Maqsoodapur | Central UP | 0.463 | 9.66 | 44,681 | 0.613 | 10.67 | 65,406 |
| Kinauni | Western UP | 1.606 | 11.22 | 1,80,260 | 1.806 | 11.50 | 2,07,664 |
Plant Location |
Zone |
2024-25 | 2023-24 | ||||
| Cane | Sugar | Sugar | Cane | Sugar | Sugar | ||
| Crushing (MMT) | Recovery (%) | Production (Tonnes) | Crushing (MMT) | Recovery (%) | Production (Tonnes) | ||
| Thanabhawan | Western UP | 1.076 | 10.77 | 1,15,845 | 1.176 | 11.11 | 1,30,580 |
| Budhana | Western UP | 1.217 | 11.10 | 1,35,085 | 1.227 | 11.19 | 1,37,395 |
| Bilai | Western UP | 1.050 | 10.65 | 1,11,860 | 1.196 | 11.92 | 1,42,540 |
| Gangnauli | Western UP | 0.699 | 10.25 | 71,670 | 0.712 | 10.20 | 72,646 |
| Pratappur | Eastern UP | 0.184 | 9.20 | 16,927 | 0.196 | 8.68 | 17,023 |
| Rudhauli | Eastern UP | 0.288 | 9.65 | 27,756 | 0.277 | 9.40 | 26,006 |
| Utraula | Eastern UP | 0.318 | 9.95 | 31,655 | 0.377 | 10.04 | 37,831 |
| Kundarkhi | Eastern UP | 0.752 | 9.71 | 72,958 | 0.852 | 9.89 | 84,212 |
Total |
11.320 | 10.51 | 11,90,281 | 12.819 | 10.89 | 13,93,171 |
Sacrifice of Sugar for B-Heavy Molasses
The entire cane of 11.320 MMT crushed on C molasses route.
Distillery division
The distillery division produced 1,07,757 KL from C-heavy molasses of industrial alcohol/ethanol during the current year against 1,78,121 KL (includes 1,11,443 KL of Ethanol produced from B-heavy molasses) in the previous year. Likewise, alcohol/ethanol sales aggregated during the current year at 1,20,411 KL (includes sales of 11,222 KL of ethanol produced from B-heavy molasses) against 1,52,719 KL (includes sales of 1,06,175 KL of ethanol produced from B-heavy molasses) in the previous year. In value terms, the sale of industrial alcohol/ethanol during the year is 682.42 crore (includes sales of 67.97 crore of ethanol produced from B-heavy molasses) as against 868.65 crore (includes sales of 644.14 crore of ethanol produced from B-heavy molasses) in the previous year.
Power division
The sale of power was recorded at 53.48 crore in the current year as against 62.96 crore in the previous year. The Company continued optimal use of co-gen capacities with better planning.
Board division
Plants of board division were not operational since 2012.
Accounting policies
These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for: Certain financial assets and liabilities measured at fair value, Defined benefit plans - plan assets measured at fair value.
With effect from April 01, 2017, the financial statements of the Company have been prepared to comply with the Indian Accounting Standards (‘Ind AS) notified under Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.
Cautionary/futuristic statements
Statements in the management discussion and analysis report describing the Companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations and futuristic in nature. Actual performance may differ materially from those either expressed or implied. Such statements represent the intentions of the management, and the efforts put into realising certain goals. Success in realising these depends on various factors both internal and external. Investors, therefore, are requested to make their own independent judgements before taking any investment decisions.
IIFL Customer Care Number
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1860-267-3000 / 7039-050-000
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+91 9892691696
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