Centre OKs export of 1.5 mln tn sugar, removes 50% export duty on molasses
This story was originally published at 09:23 IST on 10 November 2025
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MUMBAI – The Centre has allowed sugar exports of 1.5 million tonnes in the 2025-26 (Oct-Sept) sugar season. It has also decided to remove the 50% export duty on molasses, Food Minister Pralhad Joshi said in a letter dated Nov. 7 to Karnataka Chief Minister Siddaramaiah.
The sugar industry had urged the government to allow exports of 2.0 million tonnes sugar for the current season.
The government's decision was part of a broader set of measures outlined by it, aimed at supporting the interests of sugarcane farmers in India. Allowing export will help mills clear cane dues to farmers.
The Indian Sugar & Bio-Energy Manufacturers Association, in its first advanced estimate, has pegged the gross sugar output in the 2025–26 (Oct-Sept) season at 34.4 million tonnes. Based on post-monsoon pan-India satellite imagery, the total sugarcane acreage in the country for sugar year 2025–26 is estimated around 5.74 million hectares, marginally higher than a year ago, the association said in a release on Tuesday.
The association has pegged the country's net sugar output at 30.95 million tonnes after diversion of 3.4 million tonnes for ethanol production. Net sugar production is the total quantity of sugar produced after a portion has been diverted for other uses, most commonly for making ethanol. The association has pegged the closing stock for 2025–26 (Oct-Sept) at 7.45 million tonnes.
Favourable rainfall and adequate reservoir levels have enhanced crop conditions in key sugarcane growing regions. With demand being subdued and crushing underway in full swing, prices are likely be low throughout November despite the lower sales quota set for the month, according to traders. End
Reported by Taniva Singha Roy
Edited by Avishek Dutta
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