India lifts curbs on sugar export, allows overseas sales of 1 mn tonne till Sept

The move will help mills in the world’s second-biggest producer of the item, next only to Brazil, to export surplus stocks, which will support local prices.

“This (decision) ensures price stability, supports 5 crore farmer families, 5 lakh workers, and strengthens the sugar sector,” said food minister Pralhad Joshi in a post on X.

During the 2023-24 season, exports remained prohibited due to fears of lower output and local supply concerns.

Sugar is an essential item under the government’s classification of commodities and is a controlled item. India is the world’s largest consumer of the sweetener, with 90% of the produce going into commercial food products, such as biscuits, and beverages.

The permission for overseas sales comes amid projections of higher output. The country is also expected to have a higher sugarcane output of over 470 million tonnes, which will likely make more cane available for both the sweetener and ethanol, which is used to blend with petrol.

Welcoming the decision, the Indian Sugar and Bio-energy Manufacturers Association (ISMA), a producers’ body, said the nod to export one million tonnes would help prop up low local prices, leading to losses.

“The permission to export reflects the government’s commitment to balance domestic availability with industry’s financial health. This decision will contribute to timely cane payments to farmers,” said ISMA director-general Deepak Ballani.

India uses cane to manufacture ethanol for the country’s blending programme. The country is on course to achieve its target of 20% ethanol blending by 2026, sooner than the 2030 deadline set by Prime Minister Narendra Modi, home and cooperation minister Amit Shah had said recently, addressing sugar cooperatives.

India needs to divert about 4.5 million tonnes of sugar for ethanol production.