Food Secretary Sanjeev Chopra said on Tuesday that India’s upcoming sugarcane crop looks promising, and urged sugar industry bodies to reach a consensus on their demand for export quotas. The industry has been pushing for quotas to be allotted only to mills that directly export, rather than to all mills proportionally.
Currently, sugar exports are restricted, and quotas are distributed based on mills’ past production. However, many mills that are not active exporters end up selling their quotas to others, which sometimes leaves large quantities unshipped, according to the All India Sugar Trade Association (AISTA). Chopra said the government is waiting for a united proposal from the industry before making any policy changes.
On ethanol pricing, Chopra clarified that the Food Ministry does not fix ethanol prices—this responsibility lies with the Ministry of Petroleum and Natural Gas. The last revision was in November 2022, setting prices at ₹60.73 per litre for ethanol from B-heavy molasses and ₹65.61 per litre from sugarcane juice/syrup, and they remain unchanged.
He also confirmed that the government has lifted restrictions on using sugar for ethanol production. Mills can now divert sugarcane juice, syrup, and B-heavy molasses for ethanol in the current and future supply years. Additionally, broken rice has been made available as another feedstock for ethanol production, though off-take has been slower than expected due to delayed allotments.
Chopra said sugar production for the 2024-25 season is looking good, and the new sugarcane crop appears “much better than last year.” Final comments will be made after the Agriculture Ministry releases its advance estimates.
