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Informist, Tuesday, Jan. 6, 2026

 

NEW DELHI – The Department of Food & Public Distribution will review sugar mills' export performance immediately after Mar. 31 to assess the utilisation of the export quota allocated to them for the 2025-26 sugar season ending September, the department said in a communication to mills. Sugar mills that do not wish to export according to their allocation can surrender the quota by the end of March, the letter said.

 

The department will redistribute the unused quota to mills that have shown better export performance or those willing to ship additional quantity. "Sugar Mills may also be allowed to exchange their export quota (partially/whole) with the domestic quota of any other sugar mill till 31.03.2026," the letter read. Exchange of export quota will not be permitted beyond March-end, it added. 

 

On Nov. 14, the food department distributed the 1.5-million-tonne export quota for the 2025-26 season to sugar mills on a pro-rata basis among operational mills, using their average sugar production in the last three sugar seasons.

 

The government had opened sugar exports, aiming to ease domestic surplus supply and open international opportunities for mills. The food department reviews exports to promote shipment, support domestic sugar prices, and improve mills' liquidity, enabling timely payment to farmers. 

 

India's sugar production in the ongoing season rose nearly 25% on year to 11.9 million tonnes as of December end, supported by higher throughput and improved operational efficiency, the Indian Sugar & Bio-Energy Manufacturers Association said. For the entire 2025-26 season ending September, ISMA has estimated gross sugar production to rise 16% on year to 34.35 million tonnes. 

 

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, according to G.K. Sood, chairman of MEIR Commodities. "The government will review how mills have utilised their export by Mar. 31, and any unused quota will be reallocated to those mills interested in exporting. Export momentum should, therefore, pick up in Jan-Mar," Ravi Gupta, executive director at Shree Renuka Sugars Ltd., told Informist earlier in an interview. 

 

In 2024-25, the government permitted exports of 1.0 million tonnes, of which mills shipped some 800,000 tonnes. End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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