India Cane Sugar Market Outlook of 2028

India Cane Sugar Market Overview

The India Cane Sugar Market has experienced notable growth, this is reflected by Global Sugar Market reaching a valuation of 191 million tons in 2023. This growth is fueled due to increased domestic demand and favorable climatic conditions for sugarcane cultivation.

Major players include Balrampur Chini Mills Ltd, Bajaj Hindusthan Sugar Ltd., Shree Renuka Sugars Ltd., Triveni Engineering & Industries Ltd., EID Parry (India) Ltd. These companies have established strong market positions through extensive production capacities, advanced processing technologies, and extensive distribution networks.

In Indian cane sugar market is the government's announcement in 2023 of an increased Fair and Remunerative Price (FRP) for sugarcane for the 2023-24 season. The FRP was set at INR 315 per quintal, up from INR 290 per quintal in the previous season.

States like Uttar Pradesh, Maharashtra and Karnataka, contributing significantly to India's sugar production. Their favorable climatic conditions, extensive irrigation facilities, and government support through subsidies and incentives have contributed to their leading position.

India Cane Sugar Market Segmentation

By Type: India Cane Sugar Market is segmented by type into white sugar, brown sugar, and liquid sugar. In 2023, Raw sugar held a leading market share. his segment's dominance is attributed to its lower production costs and high demand in both domestic and international markets. It is primarily used in industrial applications and for export purposes, making it a crucial component of the sugar industry.

By Application: India Cane Sugar Market is segmented by Application into food and beverage industry, pharmaceutical industry, and others. In 2023, the food and beverages industry dominated the market because of the extensive use of sugar in manufacturing confectionery, bakery products, beverages, and dairy products drives this segment.

By Region: India Cane Sugar Market is segmented by Region into North, South, East, West. In 2023, the northern region leads the market due to state's conducive climatic conditions, extensive irrigation facilities, and government support through subsidies and incentives have contributed to its leading position.

India Cane Sugar Market Competitive Landscape

Player

Establishment Year

Headquarters

Bajaj Hindusthan Sugar Ltd

1931

Mumbai, Maharashtra

Balrampur Chini Mills Ltd

1975

Kolkata, West Bengal

Shree Renuka Sugars Ltd

1998

Mumbai, Maharashtra

EID Parry India Ltd

1788

Chennai, Tamil Nadu

Dhampur Sugar Mills Ltd

1933

New Delhi, India

Balrampur Chini Mills Ltd.: Balrampur Chini Mills Ltd. is one of the largest sugar manufacturing companies in India with a production capacity of 8,000 TCD (tons crushed per day). In March 2024, Balrampur Chini announced plans to invest Rs 2000 crore to set up a polylactic acid (PLA) bioplastics unit, as part of its expansion strategy.

Bajaj Hindusthan Sugar Ltd.: Bajaj Hindusthan Sugar Ltd. has a production capacity of 136,000 TCD, making it the largest sugar producer in India. In 2024, Bajaj Hindusthan announced a strategic partnership with a global biofuel company to enhance its ethanol production capabilities.

Shree Renuka Sugars Ltd.: Shree Renuka Sugars is one of the largest sugar producers and refiners in the world, with sugar refining capacity of 1.7 million tons per annum. In October 2023, Shree Renuka Sugars acquired Anamika Sugar Mills based in Uttar Pradesh for ₹200 crore. This move is part of the company's strategy to expand its operations and enhance its market presence in the sugar sector.

India Cane Sugar Industry Analysis

India Cane Sugar Market Growth drivers

Diversification into Ethanol Production: The sugar industry is increasingly diversifying into ethanol production, driven by government initiatives promoting ethanol blending in fuels. In the 2022 season, 35 lakh tonnes of sugar were diverted for ethanol production, which not only helps in managing surplus sugar but also contributes to energy sustainability.

Export Opportunities: India has become a significant exporter of cane sugar, the country has leveraged its strategic position to supply key markets such as Indonesia, Bangladesh, and the Middle East. In 2022, India exported 61 lakh tons of raw cane sugar, making it the second-largest exporter of raw sugar globally, following Brazil.

Shift Towards Organic Sugar: There is a growing consumer preference for organic and natural products, including organic cane sugar. This trend is driven by health-conscious consumers seeking chemical-free ingredients, which is boosting the demand for organic sugar in the market.

India Cane Sugar Market Challenges

Climatic Variability and Weather Conditions: Unpredictable weather patterns and erratic rainfall can adversely affect sugarcane yields, leading to supply shortages and price volatility. Such climatic challenges underscore the need for better water management practices and climate-resilient crop varieties to ensure consistent production levels.

Fluctuations in Global Sugar Prices: Global sugar price volatility significantly affects the profitability of Indian sugar producers and their competitiveness in international markets. For example, in 2024, sugar prices are around $0.22 per pound, with concerns about supply shortages stemming from issues in India, Brazil, and the effects of El Niño on Asian supplies.

India Cane Sugar Market Government Initiatives

Fair and Remunerative Price (FRP) Policy (2023): The government increased the FRP for sugarcane to INR 315 per quintal, ensuring better returns for farmers and encouraging higher production. The FRP policy has also enhanced the financial viability of sugarcane farming.

Sugar Export Subsidy (2022): This initiative has made Indian sugar more competitive on the global market, The policy has also helped stabilize domestic sugar prices and improve the financial health of sugar mills, and the increased export activity has contributed to higher foreign exchange earnings. The financial position of sugar mills has improved significantly, with over 96% of cane dues to farmers cleared by October 2022, compared to only 73% in July 2020.

India Cane Sugar Market Future Outlook

Looking ahead to 2028, the India cane sugar market is expected to continue its growth trajectory. The market is anticipated to benefit from ongoing government support, technological advancements in sugarcane farming and processing, and increasing demand for sugar in both domestic and international markets.

India Cane Sugar Market Future Trends

Ethanol Production and Biofuel Mandates: The push for ethanol blending in fuels will drive demand for sugarcane-based ethanol, contributing to market growth and diversification. The Indian government has set a target for 20% ethanol blending in petrol by 2025, which is expected to significantly increase ethanol demand

Rise of Organic and Specialty Sugars: Specialty sugars, including raw, unrefined, and low-glycemic varieties, will also see a hike in demand, particularly in urban markets. For example, the Ayurvedic medicine Madhumeh Arogya Amrit Ayush 82 Madhumeh Plus uses organic cane sugar as an ingredient to help control blood sugar levels which is approved by India's Ministry of AYUSH will further experience increased market presence.
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