With export push, sugar industry remains stable with adequate stocks and positive outlook
India’s sugar industry is well-positioned to meet domestic demand despite a lower production estimate for the current season. With ample stock, government support, and the approval for exporting 10 lakh tonnes of sugar, the sector remains stable. Sugar inflation is low at 3.5%, and reserves are projected to be sufficient, ensuring a positive outlook for the 2025-26 season.
Despite a lower sugar production estimate for the current season compared to last year, there is no cause for concern as India’s sugar industry remains well-positioned to meet domestic demand. With ample stock and strong government support, the outlook for the sector is positive, according to the industry officials.
The government has been proactive in ensuring the stability of the sugar industry, particularly following the hike in the Fair and Remunerative Price (FRP) for sugarcane. This move is part of a broader strategy to enhance the welfare of farmers and strengthen the sugar sector.
A key decision in this regard was the approval of sugar exports. The Indian government’s recent decision, announced on January 20, 2025, to allow the export of 10 lakh tonnes of sugar for the current season has significantly benefitted the industry. This policy has helped balance domestic sugar stocks while providing financial stability to millers and better price realization for mills. The timely exports have allowed mills to make prompt cane payments, benefiting 5.5 crore farmers and their families.
As per industry official, government recent export decision is grounded in the current realities of the sugar industry. They are confident that the steps taken will continue to support the sector in the long term.
As of the first four months of the current sugar season, a total of 91.6 lakh metric tonnes (LMT) of sugar have been dispatched, averaging 22.9 LMT per month. This shows that sugar availability in the country remains well within the comfort zone.
As per the reliable sources, there is no indication of sugar export ban as there is enough sugar stock available in the country. Furthermore, sugar inflation remains relatively low at 3.5 percent, especially when compared to the inflation of other commodities, which indicates a balanced market.
Looking ahead, India’s sugar reserves are projected to remain sufficient, with a closing stock of 54 lakh tonnes by September 30, 2025. After accounting for the 35 lakh tonnes of sugar diverted for ethanol production, the country is expected to produce 264 lakh tonnes of sugar, a figure that comfortably covers domestic demand despite the slightly reduced output this season, according to the industry body ISMA.
Government is also optimistic about the upcoming 2025-26 season, where bumper crop is expected, backed by favourable weather conditions and improved planting.
The sugar industry remains stable, with the government’s strategic decisions and positive market trends ensuring that both the industry and consumers can look ahead with confidence.
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Source : ChiniMandi
