India Approves Limited Sugar Export for 2024–25 Season

India has approved the export of 1 million tonnes of sugar for the current 2024–25 season. This decision aims to help sugar mills deal with falling domestic prices and enable timely payments to sugarcane farmers.

For the season, the government estimates sugar production at 32 million tonnes, with 28.5–29 million tonnes allocated for domestic consumption and 4 million tonnes for ethanol production. A carryover stock of 7.9 million tonnes from the previous season will leave a projected closing stock of 6.9 million tonnes at the end of September 2025.

To ensure adequate availability, the government maintains a buffer stock of 6 million tonnes, equivalent to two and a half months of domestic consumption. This surplus leaves 1 million tonnes, now approved for export under strict government regulation.

Export Restrictions and Industry Advocacy

The government has not banned sugar exports outright but requires authorization through permits issued by the food ministry. Last season, permits were granted only for a few diplomatic shipments.

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories have pushed for export permissions. They argue that exports will stabilize domestic markets and allow millers to clear outstanding payments to farmers. Initially, ISMA sought approval for 2 million tonnes of sugar exports.

Union Food Secretary Sanjeev Chopra emphasized that domestic availability and ethanol production take precedence. The government grants export permissions only after ensuring sufficient reserves for internal needs.

Stabilization of Domestic Markets

Allowing limited exports has provided relief to sugar mills and brought stability to domestic prices. Dilip Patil, Managing Director of Samarth SSK, noted that this decision has boosted confidence among producers.

An industry insider pointed out the undervaluation of S-grade sugar in the domestic market. This grade, which attracts a premium in global markets, may now see better alignment with international prices, opening new opportunities for Indian millers.

Balancing Domestic Needs and Exports

The government’s cautious approach to sugar exports ensures a stable supply for domestic consumption and ethanol production while offering limited export opportunities. This balanced strategy enables India to meet internal demand while allowing millers to benefit from favorable global market conditions.





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