India approves sugar exports after year-long ban

The government has allowed the export of 1 million tonnes of sugar for the 2024-25 season, lifting the ban imposed last year. This decision aims to stabilize domestic prices, enhance the financial liquidity of sugar mills, and support millions of farmers and workers in the sugar sector.

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The government has approved the export of 1 million tonnes (MT) of sugar for the 2024-25 season (October-September), considering the current domestic availability of the commodity. This marks the lifting of the export ban imposed during the last season, aiming to balance domestic sugar prices and strengthen the sector.

“This ensures price stability, supports 5 crore farmers’ families, 5 lakh sugar mill workers, and strengthens the sector,” food minister Pralhad Joshi stated in a post on X. The food ministry’s notification outlined that the 1 MT export quota has been pro-rated among sugar mills that operated during at least one of the last three sugar seasons, based on their average sugar production between 2021-22 and 2023-24.

The ministry has distributed the export quota among 518 sugar mills, ensuring a uniform allocation of 3.174% of each mill’s average sugar output over the past three seasons. This system aims to support both large and small sugar producers while maintaining equitable opportunities for exports. India had exported 6 MT of sugar during the 2022-23 season but had not allocated any export quota since then.

Deepak Ballani, Director General of the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), remarked, “The move to allow export will make the country’s sugar balance sheet healthy and aid sugar mills by enhancing financial liquidity, ensuring timely payments to sugarcane farmers.” ISMA had earlier urged the government to approve the export of at least 2 MT of sugar in the current season, citing concerns about the surplus stocks and the associated carrying costs due to an anticipated better harvest and ample opening stock.

For the 2024-25 season, sugar production is projected to reach 32 MT, while domestic consumption is estimated at 27 MT. Additionally, 4 MT of sugar is expected to be diverted toward ethanol production. The opening stock on October 1, 2024, stood at 7.9 MT, significantly exceeding the safety net of 5.5 MT.