AISTA Seeks Reforms in Sugar Export Allocation to Boost Shipments

New Delhi, Aug 13 (KNN) The All India Sugar Trade Association (AISTA) has urged the government to revise its sugar export quota system, recommending that quotas be allocated only to mills willing to export directly from their own facilities.

The association said the current mechanism is limiting exports and affecting mill profitability.

At present, export quotas are distributed among mills based on their past production. However, AISTA noted that some mills located in remote areas or not interested in exports sell their quotas to other players.

This practice leaves a portion of the allocated quantity unshipped, resulting in higher-than-necessary sugar stocks with mills.

Sugar exports remain under government restrictions, with total volumes controlled through quotas. For the 2024-25 marketing year (October–September), the government allowed shipments of 10 lakh tonnes, announced on January 20, 2025.

AISTA also criticised the 50 per cent export duty on ethanol, implemented on January 15, 2024. The association argued that it has not improved local supply as intended, noting that ethanol derived from C-heavy molasses still contributes less than 2 per cent to India’s ethanol programme.

The trade body said the current export restrictions particularly hurt mills without distilleries, as they struggle to sell molasses and generate the necessary revenue to make timely payments to sugarcane farmers.

According to AISTA data, India exported 6.44 lakh tonnes of sugar between October 2024 and August 8, 2025. Somalia emerged as the top destination, receiving 1.26 lakh tonnes during this period.

AISTA maintains that streamlining export quota allocation to focus on mills ready and equipped to export would improve efficiency, reduce excess stock, and enhance the financial health of sugar mills.

(KNN Bureau)