The government has allowed export of 1 million tonnes (mt) of sugar, sources said, to help mills realise better rates amid falling prices in the domestic market. Both the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories were insisting that exports be permitted to help mills pay sugarcane farmers.
Though ISMA had sought approval for 2 mt of sugar exports, Union Food Secretary Sanjeev Chopra, in December 2024, said the government would take a decision based on the actual surplus, stating that the first two priorities are to ensure sufficient domestic availability and divert surplus towards ethanol.
Speaking on the sidelines after addressing the annual general meeting (AGM) of ISMA on December 19, Chopra said: “There is some surplus, and how that will be used, whether it will be used for diversion (to ethanol) or otherwise, that call will be taken in due course. As of now, there is no decision on exports.” He declined to comment on when a decision would be taken.
According to government estimates, sugar production in the current season, which started on October 1, is estimated to be 32 mt, whereas the domestic consumption is seen to be 28.5-29 mt, with 4 mt diverted towards ethanol. After factoring in the carryover stock of 7.9 mt from the previous season, the closing stock at the end of September 2025 may be 6.9 mt.
As the government wants at least two and a half months of consumption as a buffer in any year to meet the initial period’s domestic consumption when the crushing season starts, to be on the safe side, 6 mt is considered sufficient based on a monthly consumption of 2.4 mt. This leaves only a surplus of about 1 mt, which has now been allowed for export.
Though there is no ban on sugar exports, the commerce ministry has stipulated that exports must be authorised through permits issued by the food ministry. This effectively puts a control in place, as the food ministry did not issue permits in the last season, except for a few consignments made on diplomatic requests.
