Sugar exports expected to gain momentum as parity improves: Tarun Sawhney
Triveni Engineering welcomed India’s approval of 1.5 million tonnes of sugar exports for 2025–26 and removal of the 50% molasses export duty. Vice Chairman Tarun Sawhney said the measures will ease surplus stocks, support liquidity, and improve competitiveness, even as low global prices slow exports until parity strengthens.
Triveni Engineering and Industries Ltd (TEIL), a leading sugar manufacturer, has welcomed the government’s decision to allow the export of 1.5 million tonnes of sugar during the 2025–26 Sugar Season (SS) and to remove the export duty on molasses.
Tarun Sawhney, Vice Chairman & Managing Director of TEIL, speaking to ChiniMandi, said, “We welcome the government’s decision to allow the export of 1.5 million tonnes of sugar for the 2025–26 season and to remove the 50 per cent export duty on molasses. The move reflects a proactive and balanced approach to managing surplus stocks, supporting liquidity, and safeguarding farmer interests at a time when sugar production is projected to increase by nearly 16 per cent to 34.35 million tonnes.”
Sawhney added that global sugar prices are currently below domestic levels, limiting immediate export realisations. These global prices are experiencing a downward trend due to record-high sugar production in Brazil. However, as parity improves, exports are expected to gain momentum, helping balance stocks and stabilise the market.
He said, “Industry estimates project net sugar production for 2025–26 at 30.95 million tonnes, after accounting for 3.4 million tonnes diverted to ethanol, leaving a closing stock of around 7.45 million tonnes and allowing room for further exports. Last season, India exported around 0.8 million tonnes of sugar against an allocation of 1 million tonnes.”
“The removal of export duty on molasses is expected to boost cash flows, reduce storage costs, and strengthen integrated operations across the value chain. Together, these steps underscore the government’s continued commitment to stability, transparency, and long-term competitiveness across India’s sugar industry,” Sawhney further added.
The export quota of 1.5 million tonnes has been allocated on pro-rata basis amongst operational sugar mills by taking into account their average production of sugar during last three sugar seasons.
All grades of sugar can be exported by a sugar mill /refinery/exporter upto the extent of quantity mentioned. Export quota of 1.5 million tonnes have been pro-rated amongst those sugar mills which operated in at least one sugar season amongst the last three sugar seasons by taking into account their average production of sugar during the last three operational sugar seasons i.e. 2022-23, 2023-24 and 2024-25.
All the sugar mills have been allocated a uniform export quota of 5.286% of their 3 years average production of sugar.
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Source : Chinimandi
