75% of sugar mills finish ops 2 months earlier

Nearly 75% of sugar mills in India, the world's largest producer of the commodity, have finished operations this month, two months earlier than they normally do, as the country's output of the sweetener is estimated to have fallen 6-9% to about 30-33 million tonnes in 2022-23, the first major decline in a decade due to weather disruptions

- Zia Haq

NEW DELHI: Experts said the impact of tightening supplies could show up around October-November, the beginning of a long-drawn festival season when demand peaks. The country is the world's largest consumer of sugar.

Lower output could also hamper India's ambitious ethanol blending programme under which the government is moving expeditiously to achieve a 20% target of blending petrol with ethanol.

Mixing of petrol with ethanol, which is made from molasses, a by-product of sugar, helps lessen the amount of oil India imports and supplement farmers' income. India is the third-largest oil consumer in the world after the US and China.

Households account for 33% of India's direct sugar consumption. The rest goes into commercial products, such as baked goods, soft drinks and other fast-moving edible goods.