Archive · 10 Nov 2025
ISMA Welcomes Sugar Export Decision, Seeks Long-Term Policy Clarity
Sugar makers in India are happy the government is letting them export more sugar this year.
They can send out about 1.5 million tons, which is more than last year.
This helps them not have too much sugar left in the country.
While this is good news for now, the sugar companies want the government to make longer-term plans.
They are asking for the price they sell sugar for to be increased because their costs have gone up.
They also want more clear rules about how much sugar can be used to make fuel (ethanol), as the current amount is much lower than expected and making it hard for factories to operate.
They believe these changes will help the sugar industry grow steadily.
ISMA welcomed the government's decision to permit 15 lakh tonne sugar exports for the current season.
The association views the export nod as a timely move to manage domestic supplies and production planning.
ISMA is seeking long-term policy clarity on the Minimum Selling Price (MSP), which has not been revised for several years.
The organization also highlighted issues with low ethanol allocation compared to projected needs for the E20 blending program.
ISMA is advocating for revised MSP and a clearer ethanol policy to ensure the sustainable growth of the sugar industry.
- Who
- Indian Sugar and Bio-Energy Manufacturers Association (ISMA) and its Director General, Deepak Ballani
- What
- Welcomed the government's decision to permit 15 lakh tonne sugar exports for the current season but urged for long-term policy reforms on Minimum Selling Price (MSP) and ethanol allocation.
- When
- Current sugar season, with an anticipated export window between mid-December and March.
- Where
- India
- Why
- To manage domestic sugar supplies, plan production, and address industry unviability due to low ethanol allocation and stagnant MSP.
ISMA's Stance
Government/Market Considerations
Export Volume and Timing
ISMA's Stance
ISMA welcomes the government's decision to allow 15 lakh tonne sugar exports, calling it a timely move that aids in planning production and easing domestic stock pressure. They note that while international market parity is currently unfavorable, advance permission allows for preparation.
Government/Market Considerations
The government's decision to permit exports provides an opportunity for the industry, especially during the mid-December to March window when Brazilian sugar is less available. The export allowance is intended to help manage domestic supplies.
Minimum Selling Price (MSP)
ISMA's Stance
ISMA seeks long-term policy reforms, specifically urging a revision of the MSP, which has remained at ₹31 per kilo for five to six years despite a production cost of around ₹41-42 per kilo, to ensure stable domestic prices and farmer protection.
Government/Market Considerations
The provided text does not detail the government's perspective on MSP revisions, focusing instead on ISMA's requests for clarification.
Ethanol Allocation and Policy
ISMA's Stance
ISMA highlights that low ethanol allocation (around 290 crore litres vs. NITI Aayog's E20 projection of 900 crore litres) makes operations unviable and requests 50% of ethanol allocation for sugar feedstock, extended priority allocation, and restricted alcohol imports.
Government/Market Considerations
The provided text does not detail the government's perspective on ethanol allocation, focusing instead on ISMA's requests for clarification.
- Sugar Export Allowance (Current Season)
- 15 lakh tonne (1.5 million metric tonnes)
- ISMA's Recommendation
- Advance permission for export planning
- ISMA's Request on MSP
- Revision of Minimum Selling Price (currently ₹31/kg) to reflect production costs (₹41-42/kg)
- Current Ethanol Allocation (Estimated)
- Around 290 crore litres
- NITI Aayog's E20 Projection
- 900 crore litres
- ISMA's Ethanol Allocation Recommendations
- 50% for sugar feedstock, extended priority allocation, restricted denatured alcohol imports
Sources
Sugar production to jump 16% to 343.5 lakh tons in 2025-26, says ISMA
India's Sugar Production Projected to Rise 16% to 343.5 Lakh Tons in 2025-26, Maharashtra Leads Growth
Six decades later, a sweeter deal may be on its way for Indian sugarcane farmers
Sugar stocks like Balrampur Chini and peers in focus today; Here's why
Dwarikesh Sugar to Balrampur Chini: Sugar stocks jump up 10% after govt allows 1.5 MT exports, removes molasses duty
Sugar Stocks Rally As Export Quota Raised To 1.5 MT, Molasses Duty Removal Fuels Market Surge
India to allow exports of 1.5 million metric tonnes of sugar, sources say
