As domestic prices trade at premium, sugar exports seen unviable currently

Centre has decided to allow exports of 15 lakh tonnes of sugar for the current 2025-26 season
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The exports of sugar from India are seen presently unviable as the domestic sugar prices are ruling higher than the international prices. However, the industry sees some opportunity coming up between mid-December and March, where in the Indian sweetener could be shipped out.

According to the Union Food Minister Pralhad Joshi, the Centre has decided to allow exports of 15 lakh tonnes of sugar for the current 2025-26 season. Anticipating a surplus production for the 2025-26 season on higher area and yields, the industry has been demanding that 20 lakh tonnes be allowed to export.

While welcoming the government’s intent to allow the export, Deepak Ballani, director general, Indian Sugar and Bio-energy Manufacturers Association (ISMA), said currently there is no viability to export as the international prices are ruling below the domestic prices. “An early permission will definitely help us to plan the raw sugar production and contracts,” he said.

“Though we cannot export at these rates, we are expecting that we will have a window may be from mid-December or January for three months, where there would be some trade flow gap in low quality whites. And that is where some parity can come. So, advance permission definitely will lift the sentiments,” Ballani said, adding that 15 lakh tonnes could be exported this season.

ISMA has projected 18.5 per cent increase in net sugar output for 2025-26 starting October at 30.95 million tonnes , after diverting about 3.4 million tonnes for ethanol production on higher cane production in states such as Maharashtra and Karnataka.

Crushing started

Abhijit Ghorpade of Ghorpade Agrovet, a broker in Kolhapur, said the trade is awaiting the notification from the Ministry detailing the modalities for exports. “Presently, the domestic prices are better than the export prices and there’s no viability at current prices. A clearer picture on production would emerge by mid-January,” he said, adding that crushing has started in Maharashtra and Karnataka.

“Presently, the ex-factory prices are in the range of ₹3,700-3,750 per quintal for the domestic market, while there are no buyers for exports even at ₹3,500 levels” Ghorpade added.

Expectations of a higher production in countries such as Brazil, India and Thailand are weighing on the global sugar prices and futures on ICE are hovering around 14.35 cents per pound.

Published on November 10, 2025