Representative image of sugar.
Credit: iStock Photo
New Delhi: The Indian government has decided to allow export of 15 lakh tonnes of sugar in the 2025-26 sugar season that started from October 1, industry lobby said on Monday.
In the last sugar season that ended on September 30, the Central government had allowed export of 10 lakh tonnes of the white sweetener. However, the actual export during the year stood at 8 lakh tonnes.
Sugar lobby the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) welcomed the move to allow higher exports in the current season when compared with the previous year. However, it also urged the government to allow additional exports to improve the viability of the sugar industry in the country.
“This timely move will enable sugar mills to plan their production in advance, channel surplus sugar into global markets, and help maintain domestic price stability,” ISMA said in a statement.
The industry lobby has been pitching for higher quota for exports of sugar as domestic prices remain comparatively low due to high supplies.
As per ISMA’s First Advance Estimates released last week, India’s net sugar production for 2025–26 sugar season is projected at 309.5 lakh tons, after accounting for 34 lakh tons diverted towards ethanol production. The domestic consumption is pegged at 285 lakh tonnes.
Based on these estimates, India is expected to have a closing stock of nearly 74.5 lakh tonnes of sugar in the current sugar season. ISMA said the 74.5 lakh tonnes of closing stock in the current season gives room for further exports.
“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,” said ISMA Director General Deepak Ballani.
“At the same time, we urge the Government to consider revising the sugar MSP and ethanol procurement prices to ensure the financial health of the industry and timely cane payments to farmers,” Ballani said.
The Minimum Selling Price (MSP) of sugar has remained unchanged at Rs 31 per kg for the past over six years. The ISMA has requested the government to increase sugar MSP to Rs 40-41 per kg. It has also pitched for fair ethanol procurement pricing.
With recent increases in sugarcane prices announced by key producing states such as Uttar Pradesh and Karnataka, the cost of sugar production for 2025–26 is estimated to rise sharply to around Rs 41.7 per kg. “An upward revision in MSP is therefore essential to ensure that sugar mills remain viable, are able to make timely payments to farmers, and maintain overall financial stability within the sector,” ISMA said.
“The volume of sugar exports will also be influenced by international market prices, which are presently experiencing a downward trend due to record-high sugar production in Brazil,” said Ankit Jain, Vice President and Co-Group Head Corporate Sector Ratings, ICRA.