Government allows export of 1.5 million tonnes of sugar for current season

10-Nov-2025 11:16 AM

New Delhi. The Union Minister for Food, Consumer Affairs and Public Distribution, in a letter to the Chief Minister of Karnataka, stated that the Central Government has decided to allow the export of 1.5 million tons of sugar for the current marketing season (October-September) of 2025-26 and to remove the 50 percent customs duty on the export of molasses.

While it has not yet been disclosed when this decision will become effective or when it will be officially notified, industry analysts believe that the sugar industry will receive significant relief after the government's decision becomes effective and that ex-factory prices may improve somewhat.

Anticipating a significant increase in domestic sugar production during the 2025-26 marketing season, the apex industry body, the Indian Sugar and Bio Energy Manufacturers Association (ISMA), has urged the government to approve the export of 2 million tons of sugar and announce its quota as soon as possible.

The Director General of ISMA stated that the government's decision to allow the export of 1.5 million tons of sugar is a positive step for the domestic industry.

This will not only stabilize the domestic market price of sugar but also facilitate timely payment of dues to sugarcane farmers.

Additionally, the burden of outstanding stocks on the sugar industry will decrease. According to the Director General of ISMA, sugar exports from the country will make it easier for millers to balance production and exports and improve cash flow.

It is noteworthy that ISMA estimates net domestic sugar production to increase by 18.5 percent to 30.95 million tons during the 2025-26 season compared to 2024-25. Furthermore, it anticipates the use of 3.4 million tons of sugar in ethanol production. Production is expected to increase rapidly in Maharashtra and Karnataka.