Sweet spot: Sugar stocks rally amid ISMA’s optimistic outlook; check details

Sugar company shares zoomed on Wednesday, March 19, after the apex body Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said sufficient stock of sugar is available in India for the ongoing 2024-25 sugar season.

According to a statement from ISMA, the industry body projected a closing stock of 54 lakh tonnes by September 30, 2025. It also said that India’s sugar reserves will remain more than adequate to meet domestic demand.

Following a thorough review by ISMA’s Executive Committee on March 12, 2025, the net sugar production estimate, after diverting 35 lakh tonnes for ethanol production, was revised to 264 lakh tonnes, the statement further said.

“Despite reduced output in some regions, the association assures that sugar availability will comfortably meet domestic demand,” ISMA said in a release.

ISMA recently revised the net production estimates downward to 264 lakh tonnes in the current marketing year ending September.

Following this, the share of sugar companies jumped on Wednesday. Balrampur Chini Mills, Uttam Sugar, Dwarikesh Sugar Industries, Dhampur Sugar Mills, Rana Sugars, EID Parry India, Shree Renuka Sugars, and Bajaj Hindusthan Sugar were among the biggest movers in the sector.

As of March 15, 2025, India has produced approximately 238 lakh tonnes of sugar, with around 200 sugar mills (38% of total mills) still operational. In Uttar Pradesh, nearly 75% of factories are running, with improved cane recovery expected to extend the crushing season until April.

Among others, Maharashtra and Karnataka experienced lower cane yields, while operations in select Karnataka mills are likely to resume during a special season in June-July 2025, ISMA said in the release.

Mills in Tamil Nadu are also set to operate during this period, contributing to sugar production.

“Nearly 80% of cane payments for the current season were cleared by mid-March 2025, compared to 69% by mid-January 2024. Additionally, 99.9% of cane payments for the 2023-24 season have been completed, ensuring better financial stability for farmers. The export policy is also expected to contribute ₹4,500 crore to foreign exchange reserves, strengthening India’s economy,” ISMA further said in the statement.