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Informist, Friday, Sept. 12, 2025

 

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--Govt official: Expecting 3.4 mln tn sugar diversion for ethanol in 2024-25 
--Govt official: Expect 4.5-5.0 mln tn sugar diversion for ethanol 2025-26 
--Govt official: Need 12 bln ltr ethanol 2025-26 to continue 20% mix in petrol 
--Govt official: 60% ethanol likely to come from grain feedstocks in 2025-26 
--Govt official: 40% ethanol likely to come from cane feedstocks in 2025-26 
--Govt official: 2024-25 sugar closing stock seen at 5 mln tn 
--Govt official: Sugar consumption in 2024-25 seen at 28 mln tn 
--Govt official: See 28.5-29.0 mln tn sugar consumption in 2025-26 
--Govt official: Oil cos may issue 2025-26 1st ethanol supply tender this mo
 

 

NEW DELHI – Oil marketing companies are likely to float the first tender for ethanol supply in 2025-26 (Nov–Oct) this month, Joint Secretary (Sugar) Ashwini Srivastava said. India requires about 12 billion litres of ethanol in 2025-26 to achieve the 20% ethanol blending in petrol uniformly across the country, the official said.

 

"I think oil marketing companies are going to put out the tender within this month only. So by October, we will come to know the estimated (sugar) diversion for (ethanol production) next year," Srivastava said. The official said about 3.4 million tonnes of sugar is likely to have been diverted for ethanol production in 2024-25, which is expected to rise to 4.5–5.0 million tonnes in 2025-26, largely in line with the industry estimate of 5.0-5.2 million tonnes.

 

Of the 12 billion litre ethanol requirement, around 60% or 7.2-7.5 billion litres of ethanol is expected to come from grain-based feedstocks such as maize, and 40% or 4.5-4.8 billion litres will be met from sugarcane-based feedstocks. Within cane-based feedstock, most ethanol will come from B-heavy molasses and sugarcane juice, he said. 

 

The Indian Sugar & Bio-energy Manufacturers Association has forecast gross sugar production in the 2025-26 (Oct-Sep) sugar season at 34.9 million tonnes, up over 18% from last year. Citing surplus sugar production expected in the upcoming season, ISMA has urged the government to allow 2.0 million tonnes of exports in 2025-26. "We humbly request the government to permit the export of 2 million tonnes of sugar in 2025-26, with an early policy announcement, so that mills can contract forward, secure better prices, plan their production, and maintain market balance," ISMA President Gautam Goel said Thursday. 

 

Government officials said the export policy for 2025-26 is yet to be decided and will depend on actual sugar production during the season. However, they indicated there is scope for exports, without specifying the likely quantity or timing. "We can say that, considering the present available data, there will be scope for export of sugar," Srivastava said. 

 

On the sugar balance sheet, the government sees consumption at 28 million tonnes in 2024-25, which is projected to increase to 28.5–29.0 million tonnes in 2025-26. India is expected to close the current season with 5 million tonnes of sugar stock, down from 8 million tonnes last year.

 

Despite the lower sugar production, the government allowed mills to export 1.0 million tonnes of sugar in 2024-25. This was because the country had comfortable stocks as the 2024-25 season opened with high carry-forward stocks of 8 million tonnes. Of the 1.0 million tonnes export quota, mills have shipped 750,000 tonnes of sugar as of Jul. 31, and are expected to export another 800,000 tonnes by September end, the official said. According to industry officials, India exported less sugar than the quota because global sugar rates were not attractive to Indian exporters.

 

Srivastava underlined the government's efforts to improve crop estimates through new initiatives, including the use of artificial intelligence, machine learning, satellite imagery, and annual crop surveys. A pilot project with a sugar mill in Uttar Pradesh is already underway, and a nationwide farmer registry is being developed to enable better monitoring, procurement efficiency, and payments to farmers, he said. 

 

Sugar mills have so far paid 96?ne payments or INR 980 billion to sugarcane farmers in the current season. This is expected to touch INR 1 trillion by the end of the month, Srivastava said. End

 

Reported by Afra Abubacker and Pallavi Singhal

Edited by Saji George Titus

 

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