The government’s recent decision to approve the export of 10 lakh metric tonnes (LMT) of sugar for the 2024-25 season has provided a much-needed boost to the sugar industry. This timely intervention addresses concerns over excess sugar stocks and declining domestic prices, offering significant relief to the sector.
According to the ISMA (Indian Sugar and Bio Energy Manufacturers Association), the export allowance has helped balance sugar inventories and provided financial stability to sugar mills, enabling them to make prompt cane payments. This move directly benefits 5.5 crore farmers and their families, ensuring the continued security of their livelihoods. Following the announcement, sugar mills have accelerated payments to farmers. As of February 6, 2025, approximately 75% of cane dues have been cleared nationwide, compared to 68% before the export approval. In key sugar-producing states like Maharashtra and Karnataka, cane payments have risen to 84% and 66%, up from 77% and 55%, respectively.
“This export decision has also positively impacted domestic market sentiments, stabilizing sugar prices. Moreover, the announcement has fostered a healthier demand-supply balance. As a result, sugar prices have seen an upward correction, bringing much-needed stability to the market,” ISMA further added in a release.
Sugar body stated that the price stabilization benefits both sugar mills and farmers, ensuring fair and timely returns for their produce and strengthening the financial health of the sector. This positive market response also encourages continued investment and growth within the industry, fostering long-term sustainability.
Export quota of 10 LMT have been prorated amongst those sugar mills which operated in at least one sugar season amongst the last three sugar seasons by taking into account their average production of sugar during the last three operational sugar seasons i.e. 2021-22, 2022-23 and 2023-24.
All the sugar mills have been allocated a uniform export quota of 3.174% of their 3 years average production of sugar.
The new sugar mills which have commenced sugar production for the first-time during sugar season 2024-25 or the mills which were closed in the previous three sugar season(s) but have restarted in the sugar season 2024-25 have also been allocated export quota of 3.174% of their estimated sugar production in sugar season 2024-25 duly verified by respective Cane Commissioner.
