Centre Permits Export Of 1.5 Mn Tonnes Of Sugar, Withdraws Duty On Molasses

New Delhi, Nov 11 (KNN) The government has approved the export of 1.5 million tonnes (MT) of sugar for the 2025–26 sugar season, which began in October. 

The decision, aimed at managing surplus stocks and supporting sugarcane farmers, was conveyed by Union Food Minister Pralhad Joshi in a letter to Karnataka Chief Minister Siddaramaiah.

As part of the move, the Centre has also withdrawn the 50 percent export duty on molasses, enabling sugar mills to tap into global markets and improve liquidity.

The current export allocation, however, is lower than the 2 MT requested by Indian Sugar & Bio Energy Manufacturers Association (ISMA). During the previous 2024–25 season, India exported around 0.8 MT of sugar against an approved quota of 1 MT.

In an interview with PTI, Food Secretary Sanjeev Chopra stated that the government had considered sugar exports due to accumulating surplus stocks, as the diversion of sugar for ethanol production was below target. 

Around 3.4 MT was diverted to ethanol in 2024–25, below the initial projection of 4.5 MT, according to official and industry sources.

For 2025–26, India’s gross sugar output is estimated at around 34 MT, with net availability after ethanol diversion expected near 31 MT. Domestic consumptions is projected at 28.5 MT, leaving a small surplus for export. 

Officials said the withdrawal of duty on molasses will boost by-product exports and improve cash flows for sugar mills. The measure is also expected to support overall sectoral stability, balance farmer interests, market stability, and trade opportunities.

(KNN Bureau)