Actual Sugar Exports Likely to Be Stuck at 6–7 Lakh Tonnes

24-Apr-2025 08:36 PM

New Delhi. Despite the Central Government setting an export quota of 10 lakh tonnes of sugar for the 2024–25 marketing season (October–September), industry experts believe that actual sugar exports are unlikely to exceed 6–7 lakh tonnes.

India, the world's second-largest sugar producer after Brazil, is facing significant production challenges this season.

The Indian Sugar and Bio-energy Manufacturers Association (ISMA) had urged the government to approve a 10 lakh tonne export quota, which was granted on 20 January 2025.

However, production estimates began to decline soon after the announcement, raising concerns about domestic availability and supply stability.

Speaking at the S&P Global Sugar Conference in Geneva, an ISMA representative said India is expected to export only 6–7 lakh tonnes during this marketing season.

The government maintains tight control over the sugar sector, regulating both sugarcane pricing through the Fair and Remunerative Price (FRP) and the monthly domestic sugar sale quota for mills. Mills are also not allowed to deviate from this fixed sales quota or engage in unrestricted imports.

Sugar production in India is projected to decline by 50–60 lakh tonnes in the 2024–25 season compared to the previous year. With domestic sugar prices running high, Indian sugar is becoming less competitive in international markets, making exports more difficult.

Foreign buyers are cautious, opting to contract Indian sugar only after extensive consideration, and the pace of export deals is expected to remain slow in the coming months.

The evolving situation underscores the delicate balance between domestic demand, pricing, and international trade in India’s sugar sector.