India to export 1.5 million tons sugar next 2025‑26 season.
Rising production driven by better cane quality in major producing states.
Export decision supports farmers, reduces domestic surplus, may affect global prices.
India plans to permit 1.5mn metric tons of sugar exports for the 2025-26 season, as a decline in the diversion of sugar for ethanol production is expected to leave a larger domestic surplus, government and trade sources told Reuters on November 10.
In the past, the world’s second-largest sugar producer was a major sugar exporter but droughts and ethanol production had limited exports. This year, the government is allowing more exports to manage the surplus and support farmers.
Exports will help reduce sugar stocks in the country and support local prices, benefiting producers such as Balrampur Chini Mills, EID Parry, Dalmia Bharat and Shree Renuka Sugars, whose shares rose up to 5% in early trade on November 10, according to Reuters.
"We have agreed to allow sugar exports this year, keeping in mind surplus stocks and farmers' interests," said a government source who did not wish to be quoted ahead of the final order.
The government is likely to allow sugar exports of 1.5 million tons in the 2025/26 season, which began on October 1, with a final order expected soon, said another government official, who did not wish to be named as he was not authorised to speak to the media.
India was the world's second-largest sugar exporter in the five years to 2022/23, with shipments averaging 6.8 million tons annually. But a drought led the government to ban sugar exports in 2023/24, and it allowed only 1 million tons to be shipped overseas last year.
India's net sugar output for the 2025/26 season is estimated at 30.95mn tons after diverting about 3.4mn tons for ethanol production, up 18.5% from last year, according to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA).
ISMA last week demanded New Delhi allow exports of 2mn tons of sugar in the new season.
The industry body had earlier expected a diversion of 4.5mn to 5mn tons of sugar for ethanol this year, but only 28% of the total allocation for the biofuel went to sugar-based ethanol, with the remainder allocated to feed-based ethanol plants.
Global Sugar Market Pressure
India is expected to produce 34.9 million tonnes of sugar in 2025–2026, up 18% from the previous year, according to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA).
The increase is being driven by improved cane quality in Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra.
