The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) today held a press conference in New Delhi to discuss several matters of concern for the industry, particularly the drastic reduction in ethanol allocation to the sugar sector. The Association has sought immediate policy intervention from the Government vis-à-vis higher ethanol allocation to sugar-based feedstocks, upward revision of ethanol procurement prices and sugar MSP etc.
Sugar export
Considering a good season in 2025-26 SS, the industry has requested the Government to announce the export of 20 lakh tons in the season. The Food Secretary, Sanjeev Chopra, today said that the country is definitely having a surplus of sugar, and the Government is considering allowing exports.
Export parity
However, the international sugar prices are trading at their lowest levels in four years, pressured by higher Brazilian sugar production.
Deepak Ballani, DG, ISMA, said that there is a window of opportunity for the Indian industry to export sugar. “Between January and March, we have a window to export sugar, as the Brazilian crop is not in the market till about April. However, we would request the Government to announce the export decision soon so that mills can plan their raw sugar production as well”.
UP increases SAP
The State Government of UP increased the sugarcane price by Rs. 30 a quintal. The price of the early variety of sugarcane has been fixed at Rs 400 per quintal, while the common variety will be priced at Rs 390 per quintal for the sugar season 2025-26.
Ballani said that the increase in sugarcane price is a good decision by the Government, and the industry welcomes the decision. A higher sugarcane price will ensure that the farmer gets a higher price for his produce and the industry is committed towards farmer welfare; however, this will increase the cost of sugar production for the mills.
“It becomes even more imperative that the Government revises sugar MSP to offset the increase. Since more than 60 % of the sugar is consumed by manufacturers of beverages, sweets, hotels, restaurants etc, declaring the minimum sale price of sugar aligned to the FRP is essential to ensure the viability of the sugar industry to continue to pay the farmers cane prices”.
November sugar quota
The Government announced the monthly release quota for November 2025 at 20 lakh tons, 2 lakh tons lower than the previous month and 4 lakh tons lower than November 2024.
The DG said that the decision is reasonable as the festivities are over in October. “Sugar prices have declined in the domestic market over the past 15 days. The November sales quota appears reasonable as festivals are over in October. It’s important to ensure that prices do not fall any further”.
Crushing schedule
Niraj Shirgaokar, Vice President, ISMA said that by 1st November, most of the sugar mills in Maharashtra and Karnataka will start their crushing operations”.
Madhav Shriram, Managing Director, DCM Shriram and member of the ISMA Executive Committee, said that in UP, the crushing operations are as usual. “After 10 days of Diwali, sugar mills in Western UP start their crushing operations, and after that, Central and Eastern UP start their crushing operations. This year the same pattern would be followed”.
