Centre Approves Export of 15 LMT Sugar for 2025–26

The Central Government of India has approved the export of 15 lakh metric tonnes (LMT) of sugar for the 2025–26 sugar season, which runs from October to September. The decision was formalized through an order issued by the Union Ministry of Consumer Affairs, Food and Public Distribution on Friday. This approval is granted under the powers provided by Section 3 of the Essential Commodities Act, 1955, read along with clauses 6 and 7 of the Sugar (Control) Order, 2025.

According to the order, the total export quota of 15 LMT will be distributed proportionally among sugar mills across India. The distribution is based on each mill’s average sugar production during the last three operational seasons — 2022–23, 2023–24, and 2024–25. Only those mills that operated in at least one of these three seasons are eligible. Every eligible mill will receive a uniform export quota equivalent to 5.286% of its average sugar production over the three-year period. This uniform percentage allocation ensures a balanced distribution of export capacity across the industry, regardless of mill size.

In comparison, during the previous sugar season of 2024–25, the Indian government had allowed only 10 LMT of sugar to be exported. Therefore, this year’s quota of 15 LMT marks a significant increase in export allowance. However, the newly approved quota still falls short of industry expectations and demands.

The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) had recently stated that the country is in a strong position to export nearly 20 lakh tonnes of sugar during the current season. According to ISMA, India currently has a comfortable sugar surplus, which makes it feasible to allow a larger volume of exports without affecting domestic availability. A higher export quota, the association argued, would also help sugar mills plan their production more efficiently, especially in terms of balancing raw and white sugar output.

ISMA further emphasized that an early announcement of the export policy would benefit sugar mills by giving them sufficient time to strategize their operations and manage inventory. Such advance clarity would also allow mills to align with global market opportunities, particularly in seasons when international sugar prices are favorable. Despite ISMA’s urging and its confidence in India’s export capacity, the government has chosen a more conservative figure of 15 LMT for the 2025–26 season.

This decision reflects the government’s cautious approach toward maintaining domestic price stability and ensuring sufficient sugar availability within the country. While India has consistently been one of the world’s largest sugar producers and exporters, sugar export policies often shift depending on domestic production estimates, global supply–demand trends, and concerns about inflation.

In summary, the Centre’s decision to permit the export of 15 LMT of sugar for the 2025–26 season represents an increase from last year’s quota but remains below industry expectations. The proportional and uniform method of allocation among sugar mills aims to ensure fairness, while the ongoing dialogue between the government and industry bodies highlights the delicate balance between export potential and domestic market stability.