ISMA Seeks Government Nod for 2 Million Tonnes Sugar Export
05-Nov-2025 02:49 PM
New Delhi. Anticipating robust domestic production in the current 2025-26 marketing season, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA),
the apex organization of the domestic sugar industry, has urged the government to allow the export of 2 million tons of sugar to reduce the burden of outstanding stocks on the industry, maintain its cash flow, and avoid difficulties in paying sugarcane farmers' dues.
According to ISMA, domestic sugar production is expected to increase significantly by 16 percent during the current 2025-26 marketing season (October-September) compared to 2024-25, with production expected to increase sharply, particularly in Maharashtra and Karnataka. Production is also expected to improve in Uttar Pradesh.
Sugar production is expected to significantly exceed domestic demand and needs. If export approval is not granted, the industry will face a significant increase in sugar stocks, potentially blocking cash flow. Due to a lack of working capital, there could be significant difficulty in paying dues to sugarcane producers on time.
An ISMA press release stated that given India's favorable sugar balance sheet, India is poised to export up to 2 million tons this year, and therefore, the government has been strongly urged to announce the sugar export policy as soon as possible so that millers have adequate time to plan their raw and white sugar production strategies in advance.
It is worth noting that in the last marketing season, the government approved the export of 1 million tons of sugar, but the announcement was made very late, in the third week of January 2025. Consequently, sugar exports could only reach approximately 7.75 lakh tons.
ISMA states that the government's quota for ethanol supply to sugarcane-based distilleries requires only 3.4 million tons of sugar to produce, while the total sugar production is estimated to be 34.35 million tons.
This will leave a sugar stock of 30.95 million tonnes for edible purposes, which will be 2.45 million tonnes more than the expected domestic consumption of 28.5 million tonnes.
The industry already has a backlog of 5 million tonnes of sugar, so allowing export of 2 million tonnes will not have any impact on the domestic market.