‘Govt may allow sugar exports’

New Delhi: The government is considering allowing sugar exports in the 2025-26 marketing year, as surplus stocks accumulate due to lower-than-expected diversion of the sweetener for ethanol production, a top government official said on Wednesday.

The country’s sugar mills diverted only 3.4 million tonnes of sugar for ethanol manufacturing in 2024-25, well below the projected 4.5 million tonnes, Union Food secretary Sanjeev Chopra said in a media interview. This has resulted in high opening stocks for the current 2025-26 marketing year that runs from October to September, he said.

Sugar production for 2025-26 is expected to reach 34 million tonnes against the annual domestic demand of 28.5 million tonnes, Chopra added.

When asked about the industry’s demands to allow exports as well as higher diversion for ethanol, Chopra said: “We are definitely having a surplus of sugar... We are considering allowing exports.”

He hinted that a decision might be taken soon, as the government would like to give a longer window for the industry to plan for exports. A committee of ministers is likely to meet next week to decide on the issue.

India exported about 8,00,000 tonnes of sugar against an allocation of 1 million tonnes during the 2024-25 marketing year.AGENCIES