India eases sugar export restrictions, allows 1M tons for 2024-25
INDIA – India has announced its decision to permit sugar mills to export up to 1 million tons of sugar for the 2024-25 season, a move that marks the easing of export restrictions imposed for over a year.
The approval, effective for the year ending in September, was confirmed by Food Minister Pralhad Joshi, who emphasized the decision’s potential to support 50 million farmers and their families while strengthening the sugar sector.
The Indian Sugar and Bio-Energy Manufacturers Association (ISBEMA) welcomed the government’s announcement, highlighting its importance for the industry.
“This decision provides significant relief to sugar mills, enabling them to generate crucial revenue, which will contribute to timely cane payments to farmers,” said Deepak Ballani, director general of ISBEMA.
The Food Ministry has allocated a uniform export quota to mills, equivalent to 3.174% of their three-year average production. Mills can fulfill the quota through direct exports or merchant exporters.
Despite speculation regarding potential exports, the decision surprised some traders due to concerns over declining production.
India’s sugar production for the current season is forecasted to fall to 27 million tons, down from 32 million tons last year. The projected figure also falls short of the country’s annual consumption of over 29 million tons, marking the first production deficit in eight years.
In India, Maharashtra, Karnataka, and Uttar Pradesh makeup over 80 percent of the nation’s total sugar production.
With the lower sugarcane yields this year in these states, the trade houses were prompted to reduce their output estimates for the current 2024-2025 season.
India, a major global sugar exporter, sold an average of 6.8 million tons annually over the five years leading to 2022-23, exporting primarily to Indonesia, Bangladesh, and the United Arab Emirates.
However, the country halted sugar exports in the 2023-24 marketing year.
The government’s approval to resume exports is expected to stabilize local sugar prices while bolstering mill revenues.
Vishal Nirani, director at Nirani Sugars, noted, “India’s re-entry to the global market sets the stage for significantly higher exports in the next marketing year, beginning in October.”
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