Archive · 3 Sep 2025
Sugar Industry Faces Consumption Dip Amidst Ethanol Shifts
The Indian sugar industry is worried because people are eating less sugar.
This is partly due to government health campaigns encouraging people to eat less sugar.
Also, the industry is now getting less ethanol production business because the government shifted to producing ethanol from grains instead of sugar.
The sugar industry leaders are seeking solutions, including possible sugar exports, to balance supply, demand, and ethanol production.
Sugar consumption is projected to decline to 275 lakh tonnes in 2024-25.
The decline marks a significant drop from 291 lakh tonnes in 2023-24.
High retail prices, health campaigns, and changing preferences contribute to the drop.
Ethanol production is shifting from sugar to grain-based sources.
Industry seeks balance between demand, ethanol, and exports.
- Who
- Sugar industry, consumers, government, FSSAI
- What
- Decline in sugar consumption and shift in ethanol production
- When
- 2024-2025 season (October-September)
- Where
- India
- Why
- Due to health campaigns, high prices and changing consumer preferences
- Projected Sugar Consumption (2024-25)
- 275 lakh tonnes
- Sugar Consumption (2023-24)
- 291 lakh tonnes
- Industry Concerns
- Falling domestic sugar consumption
- Ethanol Source Shift
- From sugar to grain-based
- Key Factor in Decline
- Government-led health campaigns
Sources
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Government allows unlimited ethanol production from sugar for 2025-26