The government is considering permitting sugar exports in the 2025–26 sugar season as surplus stocks have accumulated following lower-than-expected diversion of sugar for ethanol production, a senior government official said on Wednesday, reported PTI.
Union Food Secretary Sanjeev Chopra told PTI that sugar mills diverted only 3.4 million tonnes of sugar for ethanol manufacturing in 2024–25, against the projected 4.5 million tonnes. This shortfall has resulted in higher opening stocks for the ongoing 2025–26 sugar season, which runs from October to September.
Chopra said sugar production for 2025–26 is likely to reach 34 million tonnes, compared with the annual domestic demand of 28.5 million tonnes, as per the news report.
Responding to the industry’s request to allow exports and increase ethanol diversion, Chopra said, “We are definitely having a surplus of sugar… We are considering allowing exports.”
As per the news report, he hinted that a decision might be taken soon, as the government would like to give a longer window for the industry to plan for exports. A committee of ministers is likely to meet next week to decide on the issue.
On export feasibility, Chopra said, “Currently, international prices are not too favourable for refined sugar. There may be some export parity possible for raw sugar.” He added that since the export price is below the ex-mill price, “They will probably export at the right time; maybe raw sugar can get exported because that has export parity.”
“We had estimated a diversion of 4.5 million tonnes, but it was only 3.4 million tonnes, leaving us with a surplus,” Chopra said. The industry had offered to supply 471 crore litres of ethanol from molasses during the 2024–25 ethanol supply year ending October but delivered only 289 crore litres, he added.
