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Government clears 1.5 million tonnes of sugar exports to ease surplus and support mills
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Tuesday, 11 November, 2025, 15 : 00 PM [IST]
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Our Bureau, New Delhi
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In a major policy move aimed at balancing domestic supply and supporting the sugar industry, the Government of India has cleared the export of 1.5 million tonnes (mt) of sugar for the 2025-26 season. The decision comes after months of deliberation between the Food Ministry and industry stakeholders, as mills across key producing states were facing challenges due to high carryover stocks and delayed payments to farmers.
According to officials, the export quota will help ease domestic surplus while ensuring adequate availability in the local market. The decision was taken after assessing production trends, which remain steady despite a marginal drop in sugarcane output in Maharashtra and Karnataka.
“This export clearance will not only help stabilize domestic prices but also improve liquidity for sugar mills, enabling them to make timely payments to cane farmers,” said a senior government official.
Industry representatives welcomed the move, noting that the global market currently offers favorable prices for Indian sugar. “With international demand improving and global prices firming up, this timely clearance will help India maintain its presence in key export destinations like Indonesia, Bangladesh, and Sri Lanka,” said an official from the Indian Sugar Mills Association (ISMA).
India, the world’s second-largest sugar producer after Brazil, has been maintaining export controls to ensure domestic price stability and adequate stocks for ethanol blending. The new quota aligns with the government’s balanced approach of promoting exports while prioritizing the ethanol blending program under the National Biofuel Policy.
Experts believe this export approval will help clear excess inventories of nearly 4-5 million tonnes currently held by mills, easing storage pressure and improving cash flow in the sector.
With this green signal, the government is expected to issue detailed export guidelines shortly, specifying the allocation mechanism among sugar mills and traders. The decision is seen as a boost to India’s agricultural trade outlook and a relief for the sugar sector ahead of the new crushing season.
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