The Centre has decided to allow exports of 15 lakh tonnes of sugar for the current 2025-26 season, a move aimed at improving realisations for mills and enabling faster payments to sugarcane farmers. Along with this, the 50 per cent export duty on molasses has been removed, which is expected to further support mills and by-product markets.
In a recent letter to Karnataka Chief Minister Siddaramaiah, during the agitation by sugarcane farmers, Union Food Minister Pralhad Joshi stated that for the current sugar season, Central Government has decided to allow export of 15 LMT of sugar and also 50 per cent export duty on molasses has been removed.
Sources in the sugar industry said the food ministry has taken an in-principle decision, but an official notification is still awaited.
Joshi has not specified a timeline for when the sugar exports will take effect. Industry stakeholders believe that export approvals and rationalisation of duties will help mills improve liquidity and clear cane dues faster.
The sugar industry had been demanding that the government allow exports of 20 lakh tonnes of sugar for the 2025-26 season. The export permission is expected to improve sugar prices amid good production this year.
For the 2024-25 season, the Centre had permitted 10 lakh tonnes of sugar exports, continuing policy measures that have stabilised the sector after ethanol diversion restrictions introduced in December 2023.
The decision to scrap the 50 per cent export duty on molasses — imposed in January 2024 to prioritise domestic ethanol blending and curb inflation — marks a notable policy shift.