Govt allows 1.5 MT sugar exports for 2025-26, removes molasses duty

New Delhi: The Centre has decided to allow export of 1.5 million tonne (MT) of sugar for the 2025-26 sugar season that started from October, according to Food Minister Pralhad Joshi.

The Union Food Ministry has also decided to remove 50 per cent export duty on molasses, he said in a letter dated November 7 to Karnataka Chief Minister Siddaramaiah.

The export decision was communicated to the chief minister while listing out the steps taken by the central government to protect the interest of sugarcane farmers in the country.

“For the current sugar season also, the central government has decided to allow export of 15 lakh tonne of sugar and 50 per cent export duty on molasses has been removed,” Joshi said.

The export allocation is lower than the 2 MT demanded by the industry.

India exported about 8,00,000 tonnes of sugar against an allocation of 1 MT during the 2024-25 sugar season that ended in September.

Food Secretary Sanjeev Chopra said recently the government was considering allowing sugar exports due to accumulation of surplus stocks as diversion of the sweetener for ethanol production fell short of expectations.

Sugar mills diverted only 3.4 MT of sugar for ethanol manufacturing in 2024-25, well below the projected 4.5 MT, resulting in high opening stocks for the current season, he said.

Sugar production for 2025-26 is expected to reach 34 MT against annual domestic demand of 28.5 MT, Chopra said.