New Delhi [India], November 10 : The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has welcomed the government's decision to permit the export of 15 lakh tons of sugar during the 2025-26 sugar season, calling it a timely step to support industry planning and market balance. The move, ISMA stated in its press release, would enable sugar mills to manage surplus production, ensure better price stability, and maintain the financial health of the sector.
In addition to sugar pricing, ISMA also urged the government to raise ethanol procurement prices to reflect higher feedstock and conversion costs. It stated that the current allocation of 289 crore litres of ethanol, which accounts for only 27.5 per cent of the total allocation, has left much of the industry's distillery capacity underutilized.
The association recommended aligning ethanol allocations with the NITI Aayog's Ethanol Blended Petrol Roadmap, which calls for a 55 per cent contribution from the sugar sector.
According to ISMA's First Advance Estimates released last week, India's net sugar production for the upcoming season is projected at 309.5 lakh tons after accounting for 34 lakh tons diverted towards ethanol production.
With domestic consumption estimated at 285 lakh tons, the country is expected to close the season with around 74.5 lakh tons of stock, sufficient to support exports without affecting internal supply.
However, the association also pointed out that while export permission was a welcome relief, the industry continued to face cost pressures. The association reiterated the urgent need for the government to revise the Minimum Selling Price (MSP) of sugar, which has remained unchanged for more than six years.
Rising sugarcane prices in major producing states like Uttar Pradesh and Karnataka have pushed the cost of sugar production to about Rs 41.7 per kg for 2025-26, ISMA noted, warning that without an upward revision in MSP, mills could struggle to make timely payments to farmers.
SMA Director General Deepak Ballani said, "We thank the Government for its timely and progressive decision to permit sugar exports. These steps reflect a balanced approach to managing domestic and global market realities. At the same time, we urge the Government to consider revising the sugar MSP and ethanol procurement prices to ensure the financial health of the industry and timely cane payments to farmers."
ISMA stated that continued policy support, including an MSP increase to Rs 40-41 per kg and balanced ethanol pricing, would be essential to ensure the financial viability of mills, safeguard farmer incomes, and strengthen India's sugar and bio-energy ecosystem.