India has decided to remove restrictions on sugar exports, allowing sugar mills to sell up to one million tonnes of sugar internationally until September 2025. This move comes as experts predict a strong sugarcane harvest this year.
Sugar is considered an essential commodity under government regulations and is classified as a controlled item. India is the second-largest producer of sugar in the world, following Brazil. By permitting exports, the government aims to manage surplus stocks and stabilize local sugar prices, benefiting both farmers and mill workers.
According to Food Minister Pralhad Joshi, this decision will help ensure price stability in the market, directly supporting five crore farmer families and five lakh workers. The sugar industry plays a significant role in India’s rural economy, and this export permission is expected to strengthen the sector. During the 2023-24 season, sugar exports were restricted due to concerns over low production and maintaining sufficient domestic supply.
India is also the largest consumer of sugar, with around 90% of the production being used in commercial food items like biscuits and beverages. With a projected sugarcane output of over 470 million tonnes this year, the country expects an ample supply for both sugar production and ethanol manufacturing. Ethanol is a critical component for India’s petrol blending program, helping reduce dependence on imported fuel.
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The Indian Sugar and Bio-energy Manufacturers Association (ISMA), a key producers’ group, welcomed the government’s decision. ISMA’s Director-General, Deepak Ballani, stated that this move would prevent losses caused by low domestic sugar prices and enable timely payments to sugarcane farmers. The export approval reflects the government’s efforts to balance local supply while supporting the financial stability of the sugar industry.
India has been working on increasing ethanol production as part of its blending program. By converting sugarcane into ethanol, the country is on track to achieve its target of 20% ethanol blending by 2026, ahead of the initial 2030 goal. To meet this target, approximately 4.5 million tonnes of sugar will need to be diverted for ethanol production. The government’s support for exports and ethanol manufacturing underscores its commitment to a sustainable and balanced sugar industry
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