India allows 10 lakh tonnes of sugar export amid production worries
The Food Ministry's order allows the export of all sugar grades within allocated quotas.
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The Central government has permitted the export of 1 million tonnes of sugar for the 2024-25 season ending in September, aiming to stabilize domestic prices and support the sugar industry.
Food Minister Pralhad Joshi said that the Government of India has approved a 10 LMT sugar export quota for 2024-25. This ensures price stability, supports 5 crore farmer families, 5 lakh workers, and strengthens the sugar sector.
The Food Ministry's order allows the export of all sugar grades within allocated quotas. Sugar mills can export directly or through merchant exporters until September 30, with the flexibility to surrender their quotas by March 31 or swap them with domestic allocations. The order also permits mutual quota exchanges between mills, subject to Food Ministry approval.
The Indian Sugar and Bio-energy Manufacturers Association (ISMA) welcomed the export approval, with Director General Deepak Ballani stating that the decision will provide much-needed revenue to mills and help them clear cane payment dues.
The latest decision could put pressure on global sugar prices while helping to prop up local prices. This comes amid a decline in domestic sugar prices, which has squeezed mill margins.
India's sugar output for 2024-25 is projected to decline to 27 million tonnes from 32 million tonnes last year, falling short of the domestic consumption estimate of over 29 million tonnes.
By January 15, production had reached 13.06 million tonnes, marking a 13.66% year-on-year decline due to lower yields in key states like Maharashtra, Karnataka, and Uttar Pradesh.
