INDUSTRY
Government permits 15 lakh tonnes of sugar exports, scraps export duty on molasses
- IBJ Bureau
- Nov 10, 2025
The Centre has decided to allow export of 15 lakh tonnes of sugar for the 2025-26 sugar season that started from October, according to Food Minister Pralhad Joshi.
The Union Food Ministry has also decided to remove 50 per cent export duty on molasses, the minister has said in a letter, dated November 7, to Karnataka Chief Minister Siddaramaiah.
The export decision has been communicated to the Karnataka chief minister while listing out the steps taken by the Central government to protect the interest of sugarcane farmers in the country.
“For the current sugar season also, the Central government has decided to allow export of 15 lakh tonnes of sugar, and 50 per cent export duty on molasses has been removed,” Mr Joshi has said.
The export allocation is lower than the 20 lakh tonnes demanded by the industry. India had exported about 8,00,000 tonnes of sugar against an allocation of 10 lakh tonnes during the 2024-25 sugar season that ended in September 2025.
Food Secretary Sanjeev Chopra had recently said that the government was considering allowing sugar exports due to accumulation of surplus stocks, as diversion of the sweetener for ethanol production had fallen short of expectations.
Sugar mills had diverted only 3.4 mt of sugar for ethanol manufacturing in 2024-25, well below the projected 4.5 mt, resulting in high opening stocks for the current season, he had said.
Sugar production for 2025-26 is expected to reach 340 lakh tonnes against annual domestic demand of 285 lakh tonnes, Mr Chopra had added.
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