Sugar Export: Govt Considers Allowing Exports
The government is considering allowing sugar exports in 2025-26 due to surplus stocks caused by lower diversion for ethanol. Sugar output is estimated at 34 million tonnes against demand of 28.5 million tonnes. A ministerial committee will decide soon, with raw sugar exports more likely given current global price conditions.
New Delhi, Oct 29 (PTI) The government is considering allowing sugar exports in the 2025-26 marketing year, as surplus stocks accumulate due to lower-than-expected diversion of the sweetener for ethanol production, a top government official said on Wednesday.
The country’s sugar mills diverted only 3.4 million tonnes of sugar for ethanol manufacturing in 2024-25, well below the projected 4.5 million tonnes, Union Food Secretary Sanjeev Chopra told PTI in an interview.
This has resulted in high opening stocks for the current 2025-26 marketing year that runs from October to September, he said.
Sugar production for 2025-26 is expected to reach 34 million tonnes against the annual domestic demand of 28.5 million tonnes, Chopra added.
When asked about the industry’s demands to allow exports as well as higher diversion for ethanol, Chopra said: “We are definitely having a surplus of sugar… We are considering allowing exports.”
He hinted that a decision might be taken soon, as the government would like to give a longer window for the industry to plan for exports. A committee of ministers is likely to meet next week to decide on the issue.
India exported about 8,00,000 tonnes of sugar against an allocation of 1 million tonnes during the 2024-25 marketing year.
On the feasibility of sugar exports, the Secretary said: “Currently, international prices are not too favourable for refined sugar. There may be some export parity possible for raw sugar.”
The current export price of sugar is lower than the ex-mill price. “They will probably export at the right time; maybe raw sugar can get exported because that has export parity,” he added.
For refined sugar, the global price stands at Rs 3,829 per quintal as against the average ex-mill price of Rs 3,885 per quintal.
Regarding diversion of sugar for ethanol, Chopra questioned the industry’s demand for higher quantities when mills failed to utilise the allocated 4.5 million tonnes in the previous season, despite the removal of all restrictions.
Nevertheless, the Secretary said the matter pertains to the Ministry of Petroleum and Natural Gas, which could be considering their demand.
“We were earlier estimating a diversion of 4.5 million tonne, but it was 3.4 million tonne only, and we are left with a surplus,” he said.
The sugar industry offered to supply 471 crore litres of ethanol from molasses in the 2024-25 ethanol supply year ending October, but only delivered 289 crore litres, he said.
“We removed all restrictions for ethanol production from molasses. But maize has got the lion’s share,” Chopra said.
Of the total estimated supply of 1,048 crore litres for the season, 289 crore litres came from molasses (28 per cent ), 478 crore litres from maize (45 per cent), and 235 crore litres from rice (22 per cent ), he added.
“Our priority of utilisation has been first the domestic consumption, diversion for ethanol, and the balance goes for exports,” Chopra said.
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Source : Rediff.com
