New Delhi, Nov 5, 2025:
India’s sugar industry is gearing up for a strong comeback on the global stage. After years of export restrictions and uncertainty, the sector is looking forward to new opportunities—provided the government allows exports this season.
According to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), sugar production in the current season (2025–26) is expected to rise by 16–18% to reach around 34.35 million tonnes. Of this, about 3.4 million tonnes will be diverted for ethanol production, leaving a net output of roughly 30.95 million tonnes.
Domestic Demand and Surplus Stock
India’s annual sugar consumption stands at approximately 28.5 million tonnes, leaving a surplus of 7.45 million tonnes. This excess production opens up fresh opportunities for exports, something the industry has been waiting for over two years.
The central government had halted sugar exports to meet domestic demand and support its ethanol blending programme, but with production now back on track, millers see a chance for India to re-enter the global sugar market.
Global Prices at a High
Global sugar prices have surged due to weak production in Brazil, Thailand, and the European Union. In such a scenario, India has a golden opportunity to benefit from exports. ISMA has urged the government to announce a clear export policy soon, enabling mills to sign international contracts in time.
Potential to Export 2 Million Tonnes
ISMA estimates that India could export at least 2 million tonnes of sugar this season, significantly boosting foreign exchange earnings.
Ethanol production, meanwhile, continues to play a vital role in the sector’s transformation. Diverting 3.4 million tonnes of sugar towards ethanol will strengthen India’s energy security, support the ethanol blending targets, and help position the sugar industry as a key player in the green energy transition.
Boost to Farmers and Rural Economy
Industry experts say timely export approval would improve cash flow for mills, allowing them to clear cane payment dues to farmers faster. This, in turn, would inject fresh momentum into the rural economy. The government, on its part, stands to gain from higher tax revenues and foreign exchange inflows through both ethanol and sugar exports.
A Sector Standing on Three Pillars
With growing production, ethanol-driven energy diversification, and export potential, India’s sugar sector now rests on three strong pillars—production, energy, and exports. Experts believe that with stable and transparent policies, the industry can become a pillar of economic stability and a long-term source of foreign exchange for the country.
