Slow Exports Put Sugar Target at Risk

11-Jun-2025 12:18 PM

Mumbai. In January, the Central Government announced a quota of 10 lakh tonnes for sugar exports by domestic mills during the current marketing season of 2024-25. However, even after nearly five months, the pace of shipments has remained slow. According to the All India Sugar Trade Association (ISTA), a total of 5.38 lakh tonnes of sugar has been exported so far this season. Of this, 2.29 lakh tonnes were shipped in the months of April and May. Some sugar is still in transit, taking the total closer to 5.61 lakh tonnes.

ISTA reports that out of the total sugar exported, 4.10 lakh tonnes was white sugar, 25,382 tonnes was raw sugar, and 81,845 tonnes was refined sugar. Romania emerged as the largest buyer, importing around 1.18 lakh tonnes of Indian sugar. Other significant buyers included Afghanistan, Sri Lanka, Djibouti, the United Arab Emirates (UAE), Libya, and Tanzania.

The export process remains sluggish. The total export also includes a little over 21,000 tonnes of sugar sent to refineries located in Special Economic Zones (SEZs), which is shipped directly from there. According to ISTA, India is likely to export about 8 lakh tonnes of sugar in the current marketing season, falling short of the 10 lakh tonne quota set for completion by 30 September 2025.

Global sugar prices continue to soften, while domestic prices remain relatively strong, making Indian sugar less competitive in the international market. In the 2023-24 marketing season, India produced around 319 lakh tonnes of sugar, but production is expected to fall by 17 percent to approximately 263 lakh tonnes in 2024-25. Due to the shortage of sugarcane, many sugar mills closed operations earlier than scheduled, reducing the crushing period. The next marketing season, 2025-26, is set to begin in October.