Despite a projected sugar production of around one million tonnes in the current 2024-25 sugar season (October-September), the Indian government is opposed to allowing surplus sugar exports at this time. 

India’s Surplus Sugar Production

At the Indian Sugar and Bio-Energy Manufacturers Association's (ISMA) annual general body meeting on Thursday, Shri Sanjeev Chopra, Secretary, Department of Food and Public Distribution, stated, “We will take the decision to allow sugar exports in due course in the current season as the main priority is to ensure adequate supplies for domestic consumption and then ensure enough supplies for ethanol production.”

The food ministry projects that domestic consumption will be 27 MT during the 2024–2025 sugar season, while sugar production will be approximately 32 MT. The government has set aside 4 MT of sugar for the production of ethanol.

According to the food ministry, the opening stock of sugar on October 1, 2024, was 7.9 MT. An estimated 32 MT of sugar will be produced in 2023–2024.

India’s Sugar Exports

In the 2022–2023 season, India exported 6 MT of sugar; since then, the government has not set aside any quota for sugar exports. Since sugarcane crushing has started, the food ministry has previously stated that it will not be providing any quotes for sugar export this season because they are closely monitoring the supply situation.

In anticipation of a better harvest and comfortable opening stocks, ISMA had urged the government to permit about 2 MT of sugar exports during the current sugar season so that mills would not have to pay the carrying costs of excess sweetener.

After Brazil, India is the world's second-largest producer of sugar.The government believes that the ethanol blending program is essential to fulfilling its green energy commitments and enhancing sugar mills' financial stability.

Reference- indiashippingnews.com