India's Sugar Supplies Set to Exceed Domestic Demand, Export Quota to Remain Unrestricted

India's domestic sugar supplies are expected to surpass domestic demand this year, according to industry sources. Despite a forecasted decline in sugar production to below 27 million metric tons, the country's sugar reserves are projected to remain sufficient, with a closing stock of around 54 lakh tonnes by September 2025. This surplus has prompted the government to maintain its decision to allow the export of 1 million tonnes of sugar for the current season, ensuring that mills can offload surplus stocks and stabilize local prices.

 

The export quota is crucial for supporting the sugar industry, which has faced challenges due to rising ethanol demand and lower cane yields in key producing states like Maharashtra and Karnataka. The move is seen as a strategic balancing act by the Indian government to manage domestic sugar prices while maintaining its position as a key global supplier.

 

Source: Bloomberg, Financial Express, ChiniMandi.