Govt Focuses on Maintaining Adequate Sugar Supply in Domestic Market

12-Dec-2025 05:13 PM

New Delhi. The Union Minister of State for Food, Consumer Affairs, and Public Distribution stated that the government's priority is to ensure adequate supply and availability of sugar at reasonable prices in the domestic market, and then allow surplus sugar to be used for ethanol production and subsequent export purposes.

Considering the initial production estimates for the current marketing season of 2025-26, the government has approved the export of 1.5 million tons of sugar to the industry.

Some MPs stated that the domestic industry is demanding an increase in the sugar export quota, which should be considered.

Regarding the removal of customs duty on molasses exports, the Minister of State for Food stated that the 50 percent export duty imposed on molasses was a temporary intervention by the government.

In fact, domestic sugarcane production declined during the 2023-24 and 2024-25 marketing seasons, which was an attempt to control molasses exports.

If this were not done, there could have been a severe shortage of this raw material (molasses) for ethanol production and for other industrial uses.

However, since domestic production of sugarcane and sugar is expected to increase significantly during the current marketing season (October-September) 2025-26, which will increase the supply and availability of molasses in the country, the government decided to waive the 50 percent customs duty on its export, effective November 14, 2025.

According to the Minister of State for Food, the government has permitted the export of 1.5 million tons of sugar for the current marketing season 2025-26 to better manage surplus production,

promote liquidity (money flow) in domestic mills, and ensure timely payment of dues to sugarcane farmers. Furthermore, the duty-free export of molasses will also increase industry revenues.