SynopsisIndia's sugar industry concludes the current season with ample stocks, but the delayed, below-normal monsoon poses a significant concern for the upcoming year. Key growing states like Maharashtra and Karnataka are under close watch as the weather will dictate next season's production. Despite strong planting conditions, the crop's crucial growth phase hinges on monsoon performance, potentially impacting output.ETMarkets.comDeepak Ballani, Director General of the Indian Sugar & Bio-energy Manufacturers Association (ISMA)India's sugar industry is closing the current season on a stable footing; but the delayed, below-normal monsoon is forcing the country's top sugar body to push back its production forecasts for the year ahead, with key growing states now firmly in the weather watchlist.Deepak Ballani, Director General of the Indian Sugar Mills Association (ISMA), told ET Now that while the current sugar season is largely wrapped up with healthy inventory levels, the real concern is what an El Niño-driven monsoon deficit could mean for next year's crop.Current season: No alarm bellsOn the immediate supply situation, Ballani offered measured reassurance. "We already have achieved almost a substantial sugar production," he said, adding that only 8 to 10 mills are operating under a special extended season in South Karnataka and Tamil Nadu -contributing negligible additional volume.India will close the current season with approximately 42–43 lakh tonnes of sugar inventory by end of September, Ballani confirmed. Factoring in domestic consumption, which remains flat year-on-year, and exports of around 8 lakh tonnes, policymakers have little reason for concern on the supply front. "I believe [this] is a stable and adequate stock in the country," he said.Retail sugar prices are expected to reflect that stability. Despite global commodity volatility, sugar has seen the lowest inflation among major commodities over the past decade, Ballani pointed out. Any price movement in the next few months is likely to be modest, a rise of just ₹1 to ₹1.50 per kilogram at most. For consumers already battling elevated food inflation, that is relatively welcome news.You Might Also Like:Next season: Weather will write the storyThe bigger question hanging over the industry is what the delayed monsoon means for the 2024–25 sugar season. Ballani flagged a near-64% rainfall deficit over the past 15–20 days and a rising probability of El Niño conditions developing through the monsoon season, a combination that historically strains India's rain-fed sugarcane belt.Maharashtra and Karnataka, which together account for a dominant share of India's sugarcane output, rely heavily on monsoon rainfall rather than irrigation. That makes them disproportionately vulnerable to any sustained deficit.ISMA, which typically releases its first sugar production estimate for the coming season by end-July, has now decided to delay that forecast to end-August. The reason is straightforward: the association wants to see actual monsoon progression before putting numbers on paper."It is very early to estimate how this will really affect sugar production," Ballani said candidly. "If we have a deficit monsoon and if there is a huge difference, there could be an effect on the sugarcane crop - but this is all yet to see."You Might Also Like:One bright spot: Planting was strongThere is at least one cushion going into the uncertainty. Ballani noted that sugarcane planting was carried out in good conditions, supported by strong rainfall last year and full reservoirs at the time of sowing. Acreage is therefore not expected to decline.The critical window now is the crop's "grand growth period," the phase when adequate water supply is most essential. How the monsoon performs over the coming two months in Maharashtra and Karnataka will likely determine whether India's sugar output takes a meaningful hit or weathers the El Niño threat, much as it has done in the past.Sugarcane, as Ballani reminded, is a resilient crop with a deep root system and a long growth cycle. But even resilience has its limits, and this monsoon season will test both the crop and the industry's forecasting nerves.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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