Export Decision for Sugar Season 2025-26
The Indian government has made a strategic decision regarding sugar exports for the 2025-26 sugar season, which commenced in October.
- The Centre will allow the export of 1.5 million tonnes (MT) of sugar.
- Additionally, there will be a removal of 50% export duty on molasses.
Communications and Industry Response
This decision was communicated by Food Minister Pralhad Joshi in a letter dated November 7 to Karnataka Chief Minister Siddaramaiah, highlighting efforts to support sugarcane farmers.
- The sugar industry had requested an export allowance of 2 MT, which was higher than the approved amount.
Previous Season's Exports and Surplus
- In the 2024-25 sugar season, India exported approximately 800,000 tonnes of sugar against an allocation of 1 MT.
- There was an accumulation of surplus stocks due to lower than expected diversion to ethanol production.
Ethanol Production and Future Expectations
- Sugar mills diverted only 3.4 MT of sugar for ethanol production, falling short of the projected 4.5 MT.
- For the 2025-26 season, sugar production is estimated at 34 MT compared to the annual domestic demand of 28.5 MT.
