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Informist, Wednesday, Dec. 31, 2025

 

By Afra Abubacker

 

NEW DELHI – The government Monday allowed mills to export 50,000 tonnes of organic sugar in 2025-26 (Apr-Mar), after permitting 25,000 tonnes of pharma-grade sugar exports in June. Although these sugar varieties fetch a premium, their production volumes in the country continue to be insignificant, industry officials said. However, export quotas for these sugar varieties ensure continued shipments to premium markets, even when general sugar exports are restricted, they added. 

 

"The government has realised that India has developed some markets for organic and pharma-grade sugar. They have recognised that when sugar exports are restricted, these two should not be stopped. So, even in years, the government restricts sugar exports, these two are exempted," G.K. Sood, chairman of MEIR Commodities, said.  

 

These differentiated or specialty sugars will continue to be exempted from export restrictions every year, according to the industry. The government restricts bulk sugar exports during years of low production to ensure availability in the domestic market. 

 

"Organic sugar is made from cane grown without chemicals and processed without chemicals. Typically, there is a premium over benchmark sugar prices, similar to other organic food," Sood said. Premium markets, such as the European Union and the US, buy small quantities, he added. 

 

Exports of organic sugar are allowed with a maximum limit of "50,000 tonnes as per financial year", according to the procedures under Foreign Trade Policy, 2023, and modalities prescribed by the Agricultural and Processed Food Products Export Development Authority, the notification said.

 

The announcement of an export quota for organic sugar has not moved the market. "There is no impact as organic sugar production is small," Praful Vithalani, chairman, All India Sugar Trade Association, said. 

 

According to industry officials, updated production estimates for organic sugar are unavailable. According to Market Research Future, India's organic sugar market was valued at $69.8 million in 2024 and is projected to grow to $320 million by 2035. 

 

Industry officials clarified that these quotas are in addition to the general sugar export quota of 1.5 million tonnes approved for 2025-26. All grades of sugar, including raw sugar, white sugar, refined sugar, and organic sugar, can be exported under the 1.5-million-tonne quota, they said. 

 

Sood clarified that export quotas for differentiated sugar varieties follow the financial year, unlike the general sugar export policy, which is governed by the sugar year (Oct-Sept). "DGFT (Directorate General of Foreign Trade) always uses the licensing year, which is the financial year. So next financial year, they will again extend it," Sood said. "DFPD (Department of Food and Public Distribution) uses sugar year for general sugar exports."  

 

The food department announces policies for export and diversion for ethanol production every year after assessing domestic sugar availability. For the ongoing 2025-26 sugar season, India's gross sugar production is projected to rise 16% on year to 34.35 million tonnes, according to the Indian Sugar and Bio-energy Manufacturers' Association. India needs 28.5 million tonnes of sugar for domestic consumption.

 

Of the 1.5-million-tonne quota, mills have sold about 200,000 tonnes of contracts to domestic exporters, and about 75,000-80,000 tonnes of sugar had been actually shipped by the end of December, Sood said.  End

 

Edited by Tanima Banerjee

 

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