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Informist, Friday, Nov. 14, 2025

 

NEW DELHI – The government has allocated 1.5 million tonnes sugar for export in 2025-26 (Oct-Sep), and distributed the quota among sugar mills, according to the Department of Food and Public Distribution. In another notification from the finance ministry, the government removed the 50% export duty on cane molasses to nil. 

 

Last week, Pralhad Joshi, Union minister, ministry of consumer affairs, food and public distribution, reportedly wrote to Karnataka Chief Minister Siddaramaiah, informing him of the Centre's decision to allow exports of 1.5 million tonnes of sugar by September end. The removal of molasses export duty was also written. 

 

As per the food department notification, all grades of sugar exports can be undertaken immediately, in accordance with the quota allocated to mills. The government has allocated export quota on a pro-rata basis among operational mills, using their average sugar production in the last three sugar seasons. 

 

The sugar industry has welcomed the government's decision and hopes to get additional quotas in the coming months. The Indian Sugar & Bio-energy Manufacturers Association has urged the government to allow 2.0 million tonnes of sugar exports in 2025-26. In the 2024-25 sugar season, the government had allowed exports of 1 million tonnes, of which only 800,000-900,000 tonnes were shipped. 

 

"When the season progresses, the government will be assured our surplus production is as mentioned (by ISMA)," ISMA Director General Deepak Ballani told Informist earlier. "Perhaps, after we complete 1.5 (million tonnes sugar exports), we can get some more," he added. India's sugar production is likely to increase 18.4% on year to 30.9 million tonnes in 2025-26, as per ISMA estimates. The country needs around 28.5 million tonnes for domestic consumption. 

 

Mills that do not want to export have to surrender the unutilised quota by Mar. 31 and the government reserves the right to reallocate these quantities to mills with better export performance or other willing mills, the notification said. 

 

To reduce logistics costs for mills located far from ports, the government said mills could exchange export quota with the domestic monthly sales quota. Mills can also swap the export quota with another mill's monthly domestic quota. "If a mill in Punjab or Uttar Pradesh, far away from the port, does not wish to export due to higher transportation cost involved, it can exchange its export quota with the monthly domestic release quantity of any other mill located nearer to the port," the notification said. 

 

Mills are required to upload their monthly export details on the government's portal. End

 

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

 

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