Team siliconindia

• Sugar output for 2025-26 expected at 34 million tonnes, above domestic demand of 28.5 million tonnes.
• Only 3.4 million tonnes of sugar diverted to ethanol production against projected 4.5 million tonnes.
• Government may permit exports soon as surplus stock piles up.

The government is likely to allow sugar exports in the 2025-26 marketing year as rising surplus stocks weigh on the market, following lower-than-expected diversion of sugar for ethanol production.

Sanjeev Chopra , Union Food Secretary, said, that mills diverted just 3.4 million tonnes of sugar for ethanol in 2024-25, short of the projected 4.5 million tonnes. This shortfall has led to higher opening stocks for the new marketing year beginning October 2025.

India’s total sugar production for 2025-26 is estimated at 34 million tonnes, while annual domestic consumption stands at around 28.5 million tonnes. Chopra confirmed that the government is actively considering export permissions to manage the surplus and that a ministerial committee may decide next week.

He noted that global prices currently make exports of refined sugar less profitable but said raw sugar exports could achieve parity. Last year, India exported about 800,000 tonnes of sugar out of an allocated one million tonnes.

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Chopra also addressed calls for higher ethanol diversion, saying mills failed to use their full allocation despite eased restrictions. Of the total ethanol produced in 2024-25, 45% came from maize, 28% from molasses, and 22% from rice.

The government’s focus remains on meeting domestic demand, supporting ethanol blending, and exporting any remaining stock to maintain market balance.