New Delhi India
Important Facts of the News
- Government may allow sugar exports in the 2025-26 marketing year.
- Lower use of sugar for ethanol has increased available stock.
- In 2024-25, only 34 lakh tonnes of sugar was used for ethanol, compared to an estimated 45 lakh tonnes.
- Initial sugar stock for 2025-26 marketing year is expected to be high.
- India’s sugar production in 2025-26 is expected to reach 3.4 crore tonnes.
- Domestic annual sugar consumption is around 2.85 crore tonnes.
- In 2024-25, around 8 lakh tonnes of sugar was exported against an allocation of 10 lakh tonnes.
- Global refined sugar price is around Rs 3,829 per quintal.
- Average ex-mill price in India is around Rs 3,885 per quintal.
- A ministerial committee may meet next week to take the final decision.
Overview
There is a possibility that the central government may permit sugar exports in the upcoming 2025-26 marketing year due to a rise in sugar stocks. This increase has come from lower diversion of sugar for ethanol production during the current year.
Reason Behind Higher Stock
According to the information shared by the Food Ministry, sugar mills used about 34 lakh tonnes of sugar for ethanol production in 2024-25. This was lower than the earlier expectation of nearly 45 lakh tonnes. Because of this, the availability of sugar in the country has remained higher than anticipated.
The marketing year for sugar runs from October to September. For the next cycle beginning October 2025, the initial stock is projected to be comfortable. This availability provides room for the government to consider export permissions.
Production and Demand Situation
The expected sugar production for the 2025-26 marketing year is estimated at nearly 3.4 crore tonnes. On the other hand, India’s domestic annual sugar consumption is roughly 2.85 crore tonnes. This means that the country is likely to have surplus sugar even after meeting internal needs.
Since the supply is projected to exceed demand, the government is evaluating export options so that the sugar industry can plan its operational and trade decisions well in advance. A committee of ministers is expected to meet soon to take the final call on the matter.
Export and Market Conditions
In the ongoing 2024-25 marketing year, India exported around 8 lakh tonnes of sugar out of the allotted quota of 10 lakh tonnes. Meanwhile, global refined sugar prices stand at about Rs 3,829 per quintal, while the average ex-mill price in India is around Rs 3,885 per quintal. This indicates that the international market scenario is not very favourable, yet the country’s internal surplus is significant.
Ethanol Supply Situation
During the ethanol supply year ending October 2025, the industry had offered to supply around 471 crore litres of ethanol from molasses. However, the actual supply amounted to about 289 crore litres. This shortfall in ethanol production from sugar raw material contributes to the present sugar surplus.
Conclusion
If approval is granted, it may support sugar mills by allowing them to manage inventories and plan marketing channels. The final decision is likely to be announced soon after the ministerial committee reviews market conditions and industry requirements.