Govt’s priority is to ensure sufficient sugar availability in domestic market at reasonable prices: Minister informs Lok Sabha
The government has prioritised domestic sugar availability at stable prices and, based on 2025-26 output estimates, approved 15 LMT sugar exports. It has also removed the 50% molasses export duty, improving mill liquidity. Sugar diversion to ethanol totals 34 LMT from 289 crore litres of allocated sugarcane-based ethanol.
The Government’s priority is to ensure sufficient availability of sugar for consumption in the domestic market at a reasonable price. Thereafter, surplus sugar is to be diverted to ethanol, followed by exports. Keeping in view the initial production estimates for the current sugar season 2025-26, the Government has permitted the export of 15 LMT of sugar, Minister of State for Consumer Affairs, Food and Public Distribution Nimuben Jayantibhai Bambhaniya informed the Lok Sabha while responding to MPs’ questions on export caps and industry demand for a higher quota.
On the removal of export duty on molasses, she said, “Imposition of 50% export duty on molasses was intended as a temporary intervention keeping in view the less sugarcane production during previous Sugar Seasons (Oct-Sep) 2023-24 & 2024-25, which would have led to the shortage of feedstock for ethanol production and other Industrial uses. Now, keeping in view the production estimates of current Sugar Season 2025-26, adequate molasses will be available in the country for ethanol production and other requirements. Accordingly, the Government has removed 50% export duty on molasses w.e.f 14.11.2025.”
To manage the surplus sugar, improve the liquidity of sugar mills and to ensure the timely payment to sugarcane farmers, Government has allowed export of 15 LMT of sugar during the Sugar Season 2025-26. Further, the government has removed 50% export duty on molasses which will improve the liquidity of sugar mills and help in timely payment to sugarcane farmers.
“Out of the total allocation of 1048 crore litres ethanol by the Oil Marketing Companies (OMCs), about 289 crore litres has been allocated to sugarcane-based feedstock resulting in the diversion of about 34 LMT of sugar to ethanol. Government has also allowed export of 15 LMT sugar to manage excess sugar to prevent ex-mill price crashes,” she added.
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Source : Chinimandi
