Permitting sugar exports may be considered

29-Oct-2025 01:31 PM

New Delhi. Citing production, usage, and stock figures, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the apex body of the sugar industry, requested the central government to allow the export of 2 million tons of sugar in the current marketing season (October-September) 2025-26.

However, the government stated at the time that the issue could be considered once the production situation became clearer. The Union Food Ministry has now estimated domestic sugar production at 34 million tons, including stocks diverted for ethanol production.

It is believed that sugar use for ethanol production may be lower than expected this time because the government has not increased its selling price. This could result in increased sugar stocks for food purposes.

In such a situation, the government may consider allowing sugar exports to strengthen the industry financially. It is true that at the beginning of the current marketing season, the domestic industry's surplus sugar stocks fell below 5 million tonnes, and a quota of 2 million tonnes for domestic sales is reported to have been set for November. However, if production conditions improve, stocks will increase.

For the 2024-25 marketing season, 1 million tonnes of sugar was approved for export, but actual shipments reached only around 7.75 lakh tonnes.

Currently, global sugar market prices are still low, while domestic market prices remain high. This may pose difficulties in exports, but it is also true that many importing countries are looking to Indian sugar.

The announcement to allow sugar exports for the 2024-25 marketing season was made on January 20, 2025, even though the season had already begun in 2024.

In light of this, the industry and trade sector are demanding that sugar exports be approved for the 2025-26 marketing season, and should be announced as soon as possible to give millers more time to export.

However, the central government's priority is ensuring adequate domestic sugar supply and availability and encouraging ethanol production, while export approval is a distant third. If there are indications of a decline in sugar use for ethanol production, allowing its export could be seriously considered.