New Delhi, June 21 -- India's sugar industry is facing a tighter supply-demand situation as production has fallen sharply from its peak while domestic consumption continues to rise, according to a sector note by Exencial Research Partners.

The report, titled "India Sugar: The Squeeze, The Cycle, The Shift", said sugar output has declined around 18 per cent from its FY22 peak, even as domestic demand has climbed to record levels.

"Output has slipped ~18% from FY22 peak, while domestic demand keeps climbing. Buffer stocks are now back to multi-year lows," the report said.

According to the sector note, India's sugar production fell to 29.3 million tonnes (MT) in FY25, an 8 per cent year-on-year decline and a four-year low. In contrast, do...