Government weighs sugar export policy as industry forecasts record production
Despite excess monsoon rainfall affecting parts of Punjab, the government expects minimal impact on overall paddy output. Meanwhile, ISMA projects record sugar production for 2025–26. The Centre may consider sugar exports based on ethanol needs, even as officials push for new cane varieties and sustainable farming practices.
NEW DELHI: The government has indicated that the excess rainfall during the monsoon season will have a limited impact on kharif crops, particularly paddy production at the local level. However, officials said there would be no overall effect on the country’s total agricultural output.
“I do not anticipate a drastic reduction in paddy production. There may be a decrease in some areas, such as Punjab, which has been severely affected by floods,” said Sanjiv Chopra, Secretary of the Ministry of Food Distribution and Consumers Affairs.
Punjab is a major contributor to the central pool. “But overall, I do not foresee any issues with paddy production, and it will be higher than last year,” he added.
At the same time, the private sugar industry association, the Indian Sugar and Bioenergy Manufacturers Association (ISMA), has forecast record sugar production for the upcoming 2025–26 season, which begins on 1 October.
Its preliminary assessment suggests that gross sugar production for the season could reach 349 lakh tonnes, around an 18% increase over the previous year’s production estimate. However, last year there was a significant gap between ISMA’s forecast and the actual output.
In its latest release, ISMA cited factors such as prevailing ground conditions, monsoon progress, water availability, and other related issues across all sugar-producing states in its September forecast.
The higher forecast for sugar production has prompted the government to consider allowing exports, depending on an assessment of domestic requirements and ethanol blending.
“The government may evaluate domestic consumption needs and requirements for ethanol before considering sugar exports,” Chopra stated.
He also mentioned that sugar consumption in the country has allegedly declined compared to last year, and said he plans to investigate the underlying reasons for this trend.
Chopra pointed out that production and productivity remain major issues facing the sugarcane sector.
“There is a need for new varieties of sugarcane to increase production. The current two varieties do not yield enough,” said Chopra. “The sugar industry should take the initiative to develop and improve new varieties to make sugar production sustainable.”
He further emphasised the importance of experimenting with intercropping alongside sugarcane to diversify ethanol production.
Earlier, Union Minister of Food Distribution and Consumer Affairs, Prahlad Joshi, addressed the third ISMA conference, where he highlighted the Narendra Modi government’s policy initiatives aimed at reducing dependence on oil imports by promoting ethanol blending.
“Production of ethanol will support farmers’ income while also helping to meet the goals of the Paris Agreement to reduce carbon emissions,” Joshi stated.
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Source : The New Indian Express
