ISMA lowers 2022-23 sugar output and ethanol diversion estimates

Indian Sugar Mills Association (ISMA) has not only lowered the country's sugar production estimate to 32.8 million tonnes in the current marketing year that will end in September from the earlier projected 34 million tonnes but at the same time it now expects 4 million tonnes of sugar to get diverted towards ethanol as against the earlier estimated 4.5 million tonnes.

The downward revision has been made due to a fall in sugar output in Maharashtra to 10.5 million tonnes in the 2022-23 marketing year (October-September), from an earlier projection of 12.1 million tonnes.

However, several industry players said despite fall in sugar production, ethanol diversion will be steady at 4.5 million tonnes as against 3.6 million tonnes in 2021-22 (October to September)

In Maharashtra, the sugarcane crushing season has ended.

"ISMA has revised its all-India sugar production estimate for 2022-23 (after diversion into ethanol) to 32.8 million tonnes after considering diversion of about 4 million tonnes of sugar equivalent into ethanol," the association said in a statement on Wednesday.

In January, ISMA had projected output of 34 million tonnes, after accounting for diversion of 4.5 million tonnes towards ethanol.

Sugar production in 2021-22 stood at 35.8 million tonnes post diversion towards ethanol.

The government has allowed 6 million tonnes of sugar exports for 2022-23. The country had exported around 11 million tonnes of sugar, an all time high, in the 2021-22 marketing year.