Call to Allow Sugar Exports Under OGL

25-Nov-2025 05:04 PM

Mumbai. A leading industry and trade analyst has estimated domestic sugar production to be around 34 million tons during the current marketing season of 2025-26, noting that weak sugar recovery rates from sugarcane are being observed in western Uttar Pradesh and some parts of Karnataka and Maharashtra.

The sugar market in the current season will be driven by demand and consumption. Although some organizations are expecting a slight decline in domestic sugar consumption, it appears that sugar consumption will remain stable around 29 million tons.

According to the analyst, with outstanding stocks of around 4.5 million tons and production of 34 million tons, total sugar availability will reach 38.5 million tons. Of this, 29 million tons will be used for food purposes, 3.65 million tons for ethanol production, and 1.5 million tons will be exported, which has already been permitted.

Thus, after balancing demand and supply, the industry could have a comfortable surplus stock of sugar at the end of the season. If domestic production increases beyond current estimates, an additional 500,000 tons of sugar could easily be exported.

This leading analyst believes that the government should seriously consider allowing sugar exports under Open General Licenses (OGLs). This would allow units located near ports to strategically ship sugar, while ensuring the government would be aware of the actual figures.

The government can impose restrictions on sugar exports whenever necessary. India is on its way to becoming a stable sugar exporter in the next 3-4 years, and it is therefore advisable to begin preparations now.

Global sugar production is expected to be between 1.65 and 2 million tons, with prices expected to range between 1.4 and 1.65 cents per pound. Brazil is projected to produce approximately 40 million tons of sugar.