Sugar industry gets relief with 1.5 million tonne export quota

10-Nov-2025 06:14 PM

New Delhi. The sugar industry, worried and troubled by the limited ethanol supply quota and the lack of an increase in its selling price, is hoping for some relief from the government.

The government has decided to allow the industry to export 1.5 million tons of sugar for the current marketing season (October-September) of 2025-26, a notification for which is expected to be issued soon.

The export quota for the 2024-25 season was set at 1 million tons, which is expected to increase by 500,000 tons, or 50 percent, this year.

The Union Minister for Food, Consumer Affairs, and Public Distribution is understood to have informed the Chief Minister of Karnataka in a letter stating that an in-principle decision has been made to set an export quota of 1.5 million tons for the 2025-26 season and to remove the 50 percent customs duty on sugar exports.

Although it has not been revealed when this decision will come into effect, it is certain that if an export quota of 15 lakh tonnes is granted, the sugar industry will get some relief.

Citing better production and a good balance between demand and supply, the apex industry body - ISMA had urged the government to allow the export of 20 lakh tonnes of sugar and announce it as soon as possible so that millers can formulate an export strategy and the approval for sugar export was given on January 20, 2025.

This time, it is expected to be announced in November itself. Sugarcane producers have also been demanding the government to fix a higher price for their crop. This is increasing the difficulties of the sugar industry.