India’s sugar consumption declines as industry calls for higher exports

India’s domestic sugar consumption has fallen by around 2 mln tons, increasing financial pressure on the country’s sugar mills. According to Harshwardhan Patil, President of the National Federation of Cooperative Sugar Factories (NFCSF), annual sugar consumption would normally reach about 30 mln tons for a population of 1.4 billion, but actual domestic demand has declined to approximately 28 mln tons.

The decline is largely attributed to changing consumer preferences, with growing demand for low-sugar and sugar-free products reducing household sugar consumption across the country.

The industry warns that weaker domestic demand is undermining the financial viability of sugar mills. To improve the situation, the NFCSF has urged the government to allow exports of an additional 500 thsd tons of sugar and divert another 500 thsd tons to ethanol production.

The federation is also calling for an increase in India’s minimum selling price for sugar, arguing that it has remained unchanged for the past five years despite a significant rise in sugarcane procurement costs, putting additional pressure on producers.

In addition, the NFCSF has submitted a 10-year roadmap for the development of India’s sugar sector to the government. The plan outlines measures aimed at strengthening the industry’s long-term financial sustainability, and a dedicated committee has already begun reviewing the proposals.

Tags: India, ethanol, export, sugar