Call to Permit Sugar Exports Ahead of Strong Production Forecasts

15-Sep-2025 10:57 AM

New Delhi. The premier body of the indigenous sugar industry - Indian Sugar and Bio Energy Manufacturers Association (ISMA) has made an initial estimate of production of 349 lakh tonnes of sugar in the country during the 2025-26 marketing season (October-September),

which is equal to the estimate made on 31 July. ISMA's first advance estimate of sugar production is likely to be released in October-November.

Although the central government has given the sugar industry a free hand to use sugarcane components and sugarcane juice, sugar syrup, B-heavy molasses and C-heavy molasses for ethanol production in the coming season,

but given the attractive price of sugar, those sugarcane components are unlikely to be used indiscriminately in the production of ethanol. Industry analysts say that even if 40-45 lakh tonnes of this total potential production of 349 lakh tonnes of sugar is used in ethanol production,

more than 300 lakh tonnes of pure sugar can be produced for food purposes. Domestic demand and consumption can be between 280-290 lakh tonnes.

In this way, there can be a surplus stock of at least 20 lakh tonnes of sugar and if its export is allowed, the indigenous industry will get a lot of relief.

The global market price has softened as the production situation in Brazil has started improving and more sugar is also expected in Thailand.

For the 2024-25 season, the government has allowed the export of 10 lakh tonnes of sugar, the shipment deadline of which is going to end on 30 September 2025.

The total amount of sugar exported in the marketing season will be known next month, but the shipment performance is not considered encouraging as the domestic market price of sugar is running higher than the international market price. Sugar production was initially estimated to be high for the 2024-25 marketing season, but was subsequently cut regularly.