More Stories

Informist, Wednesday, Oct. 29, 2025

 

--Govt source: Remain open to sugar exports in 2025-26 
--Govt source: Reviewing exports as sugar diversion for ethanol below view 
--CONTEXT: Sugar diversion for ethanol seen 3.4 mln tn vs 4.5-5 mln govt view

 

By Afra Abubacker

 

NEW DELHI - The government is open to the possibility of allowing sugar exports during the sugar year 2025-26 (Oct-Sept), given the likelihood of surplus production of the sweetener and reduced diversion for ethanol production, a senior government official said. Oil marketing companies' ethanol supply orders suggest sugar mills will need to use most of their sugarcane purchases to produce more sugar and less ethanol than expected earlier.

 

"The (sugar) balance sheet has now changed," the official said. "We were expecting 4.5-5.0 million tonnes of sugar diversion (for ethanol production) this year, but now it is 3.4 million tonnes." As per initial government estimates, India's gross sugar production for 2025-26 was expected to be 34.0 million tonnes. Domestic demand is estimated at 28-29 million tonnes.

 

The government had earlier expected that 4.5-5.0 million tonnes of sucrose or sugar would be diverted to produce ethanol, addressing the issue of surplus sugar. However, oil-marketing companies have only sought 2.89 billion litres of ethanol from sugarcane-based feedstock for the ethanol year 2025-26 (Nov-Oct). To deliver this volume, distillers would need to use only 3.2-3.4 million tonnes of sugar, significantly below the previous estimate.

 

According to the Indian Sugar & Bio-Energy Manufacturers Association, India's gross sugar output in 2025-26 (Oct-Sept) is expected to be 34.9 million tonnes, up over 18% from 2024-25 due to higher sugarcane acreage and favourable rainfall. Given the expected surplus, the association has been urging the government to allow 2 million tonnes of sugar exports in 2025-26. Government officials had also indicated at a conference hosted by the association in September that there would be scope for exports in 2025-26. In 2024-25, the government had permitted exports of 1.0 million tonnes of sugar, of which about 800,000-900,000 tonnes was shipped out.

 

"We are open to allowing sugar exports. We are waiting for the agriculture ministry's final estimates on cane area," the official quoted earlier said, without commenting on the quantum of exports or the timing of the announcement.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.