The Indian government has decided to permit 15 lakh tonnes of sugar exports for the 2025–26 sugar season starting in October, marking a progressive step for India’s sugar sector and bringing a significant opportunity for exporters.
The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) claims that while preserving domestic price stability, this timely action will assist sugar mills and exporters in effectively planning production cycles, utilizing excess sugar stocks, and taking advantage of international trade opportunities.
The Union Food Ministry has also decided to remove the 50% export duty on molasses, he stated in a November 7 letter to the Karnataka Chief Minister. The chief minister was informed of the export decision along with a summary of the steps taken by the government to safeguard the interests of the nation's sugarcane farmers.
Key Points for Exporters
To stay ahead of the curve, exporters should adhere to India's dynamic export policies regarding sugar.
- Sugar Export Quota: 15 lakh tonnes permitted for the current season, up from 10 lakh tonnes last year.
- Production Outlook: India’s net sugar production is projected at 309.5 lakh tonnes, after diverting 34 lakh tonnes for ethanol.
- Domestic Demand: Stable at around 285 lakh tonnes.
- Closing Stock: Estimated at 74.5 lakh tonnes—allowing room for additional exports later in the season.
ISMA praised the government's initiative and voiced hope that as production data solidifies, more export permits may be issued.
Revising Sugar MSP & Ethanol Prices
While exporters welcome the export quota, ISMA has reiterated the need for long-term pricing reforms:
-of-sugar-1.webp)
Additionally, the association has called for an upward revision in ethanol procurement prices, reflecting higher feedstock and conversion costs.
The current allocation of 289 crore liters of ethanol to the sugar sector—only 27.5% of total supply—has left several distilleries underutilized.
Aligning ethanol allocation with the NITI Aayog’s Ethanol Blended Petrol (EBP) Roadmap, which targets a 55% contribution from the sugar industry, could help balance supply, enhance profitability, and support India’s green energy mission.
What This Means for Exporters
- Improved Export Planning: Early quota announcement allows exporters to secure global contracts in advance.
- Market Diversification: Rising global demand, particularly from Asia and Africa, presents new trade avenues.
- Value Addition Potential: Strengthened ethanol blending policies open up dual revenue streams for sugar producers.
- Policy Stability: Continued government engagement indicates a balanced export and domestic supply strategy.
ISMA’s Outlook
“We thank the government for its timely and progressive decision to permit sugar exports. These steps reflect a balanced approach to managing domestic and global market realities.”
— Deepak Ballani, Director General, ISMA
India’s sugar industry and exporters have a clear path forward to capitalize on global market openings, advocate for fair domestic pricing, and support ethanol-driven diversification.
With proactive government policy and strategic industry alignment, India is poised to strengthen its position as a leading player in the global sugar and bioenergy ecosystem.
