New Delhi: The Centre on Monday permitted the export of 1 million tonnes of sugar for the 2024-25 season ending September, a move aimed at stabilising domestic prices and supporting the industry.
Food Minister Pralhad Joshi announced the decision on social media, stating the measure would benefit 50 million farmer families and 500,000 workers while strengthening the sugar sector.
Joshi said it would boost the liquidity of sugar mills, ensuring timely payment of cane dues, besides balancing availability and prices for consumers.
The Food Ministry order permits the export of all grades of sugar within allocated quantities. New mills starting production in 2024-25 and those restarting operations after closure have also received export quotas.
Mills can export either directly or through merchant exporters until September 30. They have the option to surrender quotas by March 31 or exchange them with domestic quotas to reduce transportation costs.
The policy allows mills to swap export quotas with domestic monthly release quantities through mutual agreements, subject to the Food Ministry's approval. Sugar exports under the Advance Authorisation scheme will continue under existing provisions.
The decision comes as local sugar prices hit an 18-month low, pressuring mills' margins. India's sugar output is projected to decline to 27 million tonnes in 2024-25 from 32 million tonnes last year, falling below the domestic consumption requirement of over 29 million tonnes.
According to the National Federation of Cooperative Sugar Factories, the country's sugar output reached 13.06 million tonnes by January 15, down 13.66 per cent year-on-year, due to lower yields in key producing states Maharashtra, Karnataka, and Uttar Pradesh.
The country had restricted exports entirely in the previous 2023-24 season due to domestic supply concerns. The Indian Sugar and Bio-energy Manufacturers Association (ISBMA) has welcomed the decision.
“This decision provides significant relief to sugar mills, enabling them to generate crucial revenue, which will contribute to timely cane payments to farmers," ISBMA Director General Deepak Ballani said in a statement.
