India's Sweet Strategy: Navigating Surplus and Supporting Farmers

India plans to protect sugarcane farmers from financial losses by exporting surplus sugar and increasing ethanol production. The government projects an 18% rise in sugar production, prompting measures to manage excess supply and stabilize prices, while ensuring timely payments to farmers.

India is taking proactive steps to protect its sugarcane farmers from potential income losses by managing surplus sugar supplies through increased exports and bolstering ethanol production, a senior government official revealed on Thursday.

With the world's second-largest sugar producer's market facing surplus challenges, stakeholders are concerned about potential price impacts on the New York and London futures markets, which are near five-year lows. 'The surplus is going to hurt the farmers, which we cannot afford to do,' said India's food secretary Sanjeev Chopra. The government aims to tackle the excess with strategic measures to safeguard the interests of farmers and stabilize the market.

India's sugar production is forecast to spike by 18% to 30.9 million metric tons in the 2025/26 marketing year, despite diverting 3.4 million tons for ethanol. As domestic demand stands at 29 million tonnes, the government approved 1.5 million tons of exports this season. With expected price declines due to surplus, the government plans timely decisions to support the industry's stability and ensure farmers' payments.

(With inputs from agencies.)