India Eyes Sugar Export Amid Surplus Stockpile

India considers sugar exports in 2025-26 due to surplus stock, following lower-than-expected diversion to ethanol production. Only 3.4 million tonnes were used for ethanol against a target of 4.5 million. A decision on exports is expected soon, amid unfavorable international prices for refined sugar.

In a move to address surplus sugar stock, the Indian government is contemplating allowing sugar exports during the 2025-26 marketing year. This consideration comes as a result of lower-than-anticipated diversion of sugar for ethanol production, as disclosed by Union Food Secretary Sanjeev Chopra.

During the 2024-25 period, sugar mills redirected only 3.4 million tonnes for ethanol, falling short of the projected 4.5 million tonnes. This shortfall has led to higher opening stocks for the current marketing year, propelling an expected sugar production of 34 million tonnes, against the annual domestic demand of 28.5 million tonnes.

With the export potential on the horizon, Chopra highlighted the challenges posed by unfavorable international prices for refined sugar. However, there may be opportunities for raw sugar exports, given potential export parity. A committee is expected to make a decisive call soon, giving the industry adequate planning time.

(With inputs from agencies.)