Archive · 18 Dec 2025
India to Manage Sugar Surplus
The National Federation of Cooperative Sugar Factories Limited (NFCSF) and the Indian government are working to manage a surplus of sugar.
They want to export more sugar and use some of it to make ethanol.
This is because there is too much sugar being produced, which is making prices go down.
The NFCSF also wants the government to set a higher minimum price for sugar so that mills can make enough money to pay farmers and stay in business.
If the government does not help, the mills might have trouble paying farmers, which could cause problems in rural areas.
The government is considering these measures to support the sugar industry and ensure farmers get paid on time.
India aims to manage sugar surplus through increased exports and ethanol diversion.
Sugar production in 2025/26 is projected to rise 18% to 30.9 million metric tons.
Domestic demand is around 29 million tonnes annually, with 1.5 million tons approved for export.
The government is considering raising the floor price for sugar sales in the domestic market.
Sugar prices have already fallen nearly 4% since the start of the marketing year on October 1.
- Who
- National Federation of Cooperative Sugar Factories Limited (NFCSF) and India's food secretary Sanjeev Chopra
- What
- Urged the Centre to increase sugar export quota and divert more sugar for ethanol production
- When
- December 17-18, 2025
- Where
- India
- Why
- To stabilise domestic sugar prices and support sugar mills under financial pressure
- Organization
- National Federation of Cooperative Sugar Factories Limited (NFCSF)
- Season
- 2025–26
- Expected Sugar Production
- 30.9 million metric tons
- Domestic Demand
- 29 million tonnes annually
- Export Quota
- 1.5 million tons
- Ethanol Diversion
- 3.4 million tons
- Concern
- Depressed sugar prices and financial pressure on sugar mills
- Impact
- Potential liquidity crisis affecting sugarcane farmers
- Request
- Revision of Minimum Selling Price (MSP) of sugar