Cooperative Body Seeks Higher Sugar Export Quota

18-Dec-2025 12:10 PM

Pune. The National Federation of Cooperative Sugar Factories (NFCSF), the apex body of cooperative sugar mills, has urged the government to intervene and take positive policy decisions to stabilize declining sugar prices.

The federation says the government should increase the sugar export quota and also raise the quota for using sugar in ethanol production by 500,000 tonnes.

Sugar production in the country is expected to increase significantly during the current marketing season due to a good sugarcane crop, which will provide mills with a larger quantity of raw material for crushing, and also due to indications of an improvement in the average sugar recovery rate from sugarcane. Ex-factory sugar prices are falling.

The federation says it is essential to curb the falling sugar prices, otherwise sugarcane farmers may face significant difficulties in receiving timely payment for their produce.

The ex-factory price of sugar has fallen below the cost of production, resulting in financial losses for the millers.

The federation's president says the government should protect the interests of the sugar industry by taking positive decisions at the right time. Sugar mills are in dire need of government support, and cooperative sugar mills, in particular,

require this assistance as they are facing increasing financial pressure. Increasing the sugar export quota and using a larger quantity of sugar for ethanol production is necessary to reduce the burden of the large sugar stock.

ISMA (Indian Sugar Mills Association) has also made similar demands. It has also emphasized the need to increase the minimum support price (MSP) for ex-factory sugar sales.