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Sugar exports unviable as domestic prices remain higher
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Thursday, 13 November, 2025, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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India’s sugar exports have become unviable as higher domestic prices have outpaced international rates, making overseas shipments financially unattractive for millers. Industry officials say that despite a surplus in production, exporters are holding back as domestic realizations are much better than what global buyers are currently offering.
In the domestic market, sugar prices are hovering around Rs 37–38 per kg, while global prices have dropped below ?34 per kg (FOB), leaving little room for profit after adding transport, freight, and port handling costs. “With the current price differential, exports are not viable. Mills prefer to sell in the local market rather than incur losses on shipments,” said an official from the Indian Sugar Mills Association (ISMA).
Adding to this, the government has yet to open the export window for the 2025–26 sugar season, as it prioritizes domestic availability and ethanol blending requirements. The diversion of sugarcane towards ethanol production under the Ethanol Blending Programme (EBP) has already reduced sugar output, but this year’s expected lower ethanol offtake due to reduced blending targets may lead to a higher sugar surplus.
Industry experts say that if global prices do not recover soon, India may struggle to export even a small quantity without government intervention or subsidy. “Unless the rupee weakens or global prices rise, exports are not commercially feasible,” said a senior trade analyst.
India, one of the world’s largest sugar producers, had exported around 6 million tonnes in 2022–23, but shipments fell sharply last season due to government restrictions. With domestic demand steady and prices firm, the focus now remains on managing surplus stocks efficiently while ensuring stability in retail prices.
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