ISMA Hails Government's Green Light for Sugar Exports Amid Industry Challenges

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) applauds the government's move to allow sugar exports during 2025-26, enabling surplus management and price stability. However, ISMA urges revisions in MSP and ethanol prices to support industry financial health and timely payments to farmers, amid rising production costs.

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has praised the government's decision to permit the export of 15 lakh tons of sugar for the 2025-26 season, describing it as a crucial measure for industry sustainability and market equilibrium. ISMA emphasized that this policy supports sugar mills by allowing them to effectively manage surplus production, ensuring better price stability and overall financial health for the sector.

ISMA also urged the government to reevaluate ethanol procurement prices, highlighting the increased costs associated with feedstock and conversion. The current allocation of 289 crore litres of ethanol, only 27.5% of the total allocation, has left significant distillery capacity unutilized. The association believes that aligning ethanol allocations with the NITI Aayog's Ethanol Blended Petrol Roadmap, which aims for a 55% contribution from the sugar sector, is crucial.

Furthermore, while welcoming the export permission as a positive development, ISMA underscored the ongoing financial pressures facing the industry. Rising sugarcane costs in major production states like Uttar Pradesh and Karnataka have escalated sugar production expenses to approximately Rs 41.7 per kg for the upcoming season. Without an upward revision in the Minimum Selling Price (MSP) of sugar, unchanged for over six years, mills could face difficulties in making timely payments to farmers.

(With inputs from agencies.)