India allows 1 mt sugar export amid limited surplus
The Indian government has allowed the export of 1 million tonnes of sugar to help mills amid falling domestic prices. Despite ISMA’s request for 2 million tonnes, the decision was based on surplus availability. With estimated production at 32 million tonnes and domestic consumption at 28.5-29 million tonnes, a sufficient buffer is maintained. Export permits are issued by the food ministry, ensuring market stability.
Indian Government has allowed export of 1 million tones (mt) of sugar, sources said, to help mills realize 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 authorized 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. substantial reduction in domestic sugar production, the government’s move has ensured that production levels remain unaffected,” said Dilip Patil, Managing Director of Samarth SSK and Co-Chairperson of the Sugar Bioenergy Forum (SBF) under the Indian Federation of Green Energy (IFGE). With exports allowed, the domestic sugar production landscape remains stable, bolstering market confidence, he added. An industry insider said that Indian millers may soon understand the importance of S grade sugar which they were discounting so much in domestic market even as it has a significant premium in world market and added that its prices have to align with world prices in a more rational way.
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.
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Source : The Hindu Business line
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