The decline in sugar production in India for the period from October 1 to January 15 was 7% compared to last year. Factories in the country produced 14.87 million tons of sugar, which is 7% less than last year.
The main reason for the decline in production was the decline in production in the states of Maharashtra and Karnataka. In Maharashtra, sugar production fell to 5.1 million tonnes and in Karnataka by 12.7% to 3.1 million tonnes.
However, production in Uttar Pradesh rose 14.8% to 4.61 million tonnes. In this regard, the Indian government allowed the plant to redirect up to 1.7 million tons of sugar to ethanol production.
The decision comes as New Delhi seeks to cut costs on its biofuels program. In light of the upcoming elections, the Indian government, which is concerned about the food situation, may ban sugar exports, the first export curb since 2016.