{"id":44984,"date":"2025-11-06T11:35:05","date_gmt":"2025-11-06T11:35:05","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/06\/indias-sugar-industry-pushes-for-double-export-quota-amid-ethanol-diversion-shortfall\/"},"modified":"2025-11-06T11:35:05","modified_gmt":"2025-11-06T11:35:05","slug":"indias-sugar-industry-pushes-for-double-export-quota-amid-ethanol-diversion-shortfall","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/06\/indias-sugar-industry-pushes-for-double-export-quota-amid-ethanol-diversion-shortfall\/","title":{"rendered":"India\u2019s sugar industry pushes for double export quota amid ethanol diversion shortfall"},"content":{"rendered":"
<\/div>\n

India’s sugar industry is urging the government to double the sugar export allocation to 2 million metric tons for the new season, citing lower-than-anticipated diversion of sugar for ethanol production that is expected to swell domestic surpluses, industry officials announced on Thursday.<\/p>\n

The prospect of significantly higher sugar exports from the world’s second-largest sugar producer is poised to exert considerable downward pressure on global commodity markets. <\/p>\n

Specifically, benchmark sugar futures traded in New York and London, which are currently languishing near five-year lows, could see further declines as a result of the increased supply entering the market. <\/p>\n

The heightened export activity introduces a significant variable to the global sugar supply-and-demand equation, increasing the total available stock and making it more challenging for prices to recover. <\/p>\n

This situation creates an environment where international buyers may gain leverage, anticipating or reacting to the influx of cheaper supply, thereby cementing the prevailing bearish sentiment in the futures markets.<\/p>\n

India sugar market<\/h2>\n

India had established itself as a major global player in the sugar market, ranking as the world’s second-largest sugar exporter in the five years leading up to the 2022-23 marketing year.\u00a0<\/p>\n

During this time, the country’s sugar shipments were substantial, averaging an impressive 6.8 million tons per year. <\/p>\n

This sustained export performance underscored India’s significant role in ensuring global sugar supply.<\/p>\n

However, this trend of robust exports was dramatically interrupted by severe weather conditions. <\/p>\n

A significant drought hit the country, leading to a projected decline in sugarcane output and a consequent tightening of domestic sugar availability. <\/p>\n

In response to this looming supply constraint and the need to stabilise local prices, the Indian government took the drastic step of imposing a comprehensive ban on sugar exports for the 2023-24 season. <\/p>\n

This policy intervention was a major shift, effectively halting the flow of Indian sugar to international markets. <\/p>\n

Despite the general ban, the government permitted a minimal allowance for exports, restricting the total outward shipments to just 1 million tons for the entire year. <\/p>\n

Estimates for 2025-26<\/h2>\n

This severe restriction marked a sharp departure from the previous average of 6.8 million tons, highlighting the government’s priority of securing domestic requirements over maintaining export market share in the face of a challenging agricultural year.<\/p>\n

“If you are talking about likely export volumes for this season, we’re looking at up to 2 \u202fmillion tons of sugar going out of the country,” Deepak Ballani, director general of the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), was quoted by Reuters in a report<\/a>.<\/p>\n

ISMA estimates that India’s net sugar production for the 2025-26 season, which commenced on October 1, will be approximately 30.95 million tons. <\/p>\n

This figure, which is an 18.5% increase from the previous year, is calculated after diverting around 3.4 million tons of sugar for ethanol production.<\/p>\n

Although the industry body initially projected 4.5\u20135 million tons of sugar would be diverted for ethanol production this year, sugar-based ethanol accounted for only 28% of the total ethanol allocation. <\/p>\n

The majority of the allocation was instead directed to feed-based ethanol plants.<\/p>\n

Industry aims to begin exports ahead of Brazil’s new season<\/h2>\n

Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories (NFCSF), stated that the sugar industry has petitioned the government to permit mills to commence sugar exports early. <\/p>\n

This would enable them to produce raw sugar for overseas shipments at the beginning of the season.<\/p>\n

India faces a limited, approximately three-month period for exports. This window exists before the new Brazilian supply season commences, which is expected to depress global prices.<\/p>\n

Indian sugar mills anticipate reaching export parity by early December, despite current domestic prices exceeding global rates. <\/p>\n

This shift is expected as new-season supplies start to exert downward pressure on the local market, according to Ballani.<\/p>\n

Ballani was quoted in the report:<\/p>\n

\n

Sugar mills will incur losses due to large unutilised capacity for ethanol as many mills expanded capacity following the government’s push for 20% ethanol blending in petrol, and they will have to produce more sugar.<\/p>\n<\/blockquote>\n

The post India\u2019s sugar industry pushes for double export quota amid ethanol diversion shortfall<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

India’s sugar industry is urging the government to double the sugar export allocation to 2 million metric tons for the new season, citing lower-than-anticipated diversion of sugar for ethanol production that is expected to swell domestic surpluses, industry officials announced on Thursday. The prospect of significantly higher sugar exports from the world’s second-largest sugar producer <\/p>\n","protected":false},"author":1,"featured_media":44985,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-44984","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44984"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44984\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44985"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}