The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has welcomed the Central Government’s decision permitting export of 15 lakh tons of sugar for the 2025–26 sugar season. The industry body said this move will help sugar mills plan production better, manage surplus stocks and maintain domestic price stability.
Commenting on the developments, Deepak Ballani, Director General, ISMA, said, “We thank the Government for its timely and progressive decision to permit sugar exports. These steps reflect a balanced approach to managing domestic and global market realities. At the same time, we urge the Government to consider revising the sugar MSP and ethanol procurement prices to ensure the financial health of the industry and timely cane payments to farmers.”
According to ISMA’s First Advance Estimates, India’s net sugar production for SS 2025–26 is expected to be 309.5 lakh tons, after diverting 34 lakh tons towards ethanol production. With domestic consumption estimated at 285 lakh tons, closing stocks are projected to be around 74.5 lakh tons — indicating room for further exports if production trends remain stable. ISMA expressed hope that additional export permissions could be considered later during the season.
However, ISMA reiterated that the Minimum Selling Price (MSP) of sugar needs urgent upward revision, as it has remained unchanged for over six years even as production costs have continued to rise. With recent hikes in sugarcane prices by major producing states, the cost of sugar manufacturing is estimated at Rs 41.7 per kg for SS 2025–26. ISMA said revising MSP is necessary to ensure mill viability, timely cane payments and financial stability across the sector.
The Association also urged the Government to increase ethanol procurement prices and align ethanol allocation more closely with the NITI Aayog EBP Roadmap, which recommends a 55% contribution from the sugar sector. The current allocation of just 289 crore litres — only 27.5% of total allocations — has left a significant portion of distillery capacity idle.
ISMA said continued policy support, including increasing sugar MSP to Rs 40–41 per kg, fair ethanol procurement pricing and a balanced ethanol allocation framework, will be key for ensuring the sector’s financial stability and protecting farmer interests.