Domestic sugar supply secure, prices reasonable; 2026-27 sugar export call depends on realistic crop estimate: Top Government official
India has not yet decided on sugar exports for the 2026-27 season, with a decision expected after September crop assessments. The government prioritises domestic consumption, then ethanol production. Adequate stocks are expected, while about 30 LMT of sugar may be diverted to ethanol.
The Government has indicated that it is too early to take a call on sugar exports for the 2026-27 sugar season, starting October 2026, saying any decision will be based on the actual sugar production outlook for 2026-27 SS.
Speaking to ChiniMandi, Ashwini Srivastava, Joint Secretary (Sugar), Department of Food and Public Distribution (DFPD), said that the Government’s policy on sugar remains unchanged, with domestic consumption continuing to receive the highest priority, followed by ethanol production and sugar exports.
“The government’s policy is very clear. The topmost priority is meeting domestic consumption, the second is ethanol production, and only thereafter comes exports,” he said.
Although sugar production during the 2025-26 sugar season is lower than earlier estimates, there is no concern regarding domestic availability. The Government has ensured that sugar prices remain stable and at a reasonable level.
At present, Ex-mill M-grade sugar prices in Muzaffarnagar were quoted at ₹4,150–₹4,260 per quintal. In Maharashtra, Ex-mill S-grade sugar prices in Kolhapur were reported at ₹3,920–₹3,960 per quintal. Domestic Supply Secure, But 2026-27 S
The current sugar season is expected to close with adequate sugar stocks, comfortably meeting domestic demand until the arrival of new-season sugar.
As per official data, till the sugar exports were banned in India in May, the country had exported around 8.2 lakh metric tonnes (LMT) of sugar, compared with approximately 9 LMT exported during the previous season.
However, the government is not yet willing to talk about export volumes for the upcoming season.
“It is too early to comment on exports for the 2026-27 sugar season. We expect to have a much clearer picture by September after assessing crop conditions across major sugar-producing states. The Government will take a view on sugar exports based on a realistic estimate of sugar production for next season,” he stated.
According to reports, the standing crop in Uttar Pradesh appears to be broadly unchanged from last year. However, adequate rainfall during the crop growth period remains essential for improving sucrose accumulation and ensuring healthy yields.
Srivastava said that on the ethanol front, “the government expects sugar diversion towards ethanol production to remain robust, with nearly 30 LMT of sugar likely to be diverted for ethanol manufacturing during the current season”.
The continued emphasis on ethanol diversion reflects the government’s commitment to balancing energy security objectives with food security while maintaining adequate sugar availability in the domestic market.
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Source : ChiniMandi
