ISMA Welcomes Government’s Nod for 15 Lakh Tonne Sugar Export

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has lauded the government’s decision to allow the export of 15 lakh tonnes of sugar this season, describing it as a timely intervention that will help the industry balance production and manage domestic supply. “We welcome the government’s decision to permit the export of 15 lakh tonne of sugar for this season,” said Deepak Ballani, Director General of ISMA. “This timely move will help us plan production for both raws and whites and ease domestic stock pressure.”

Export Window Seen Between Mid-December and March

Ballani noted that although export parity is currently unfavourable, advance export permission will enable mills to prepare for potential opportunities. “Even though parity is not there in the international market today, advance permission will help in planning raw production and contracts,” he said. ISMA anticipates a three to three-and-a-half-month export window between mid-December and March, a period when Brazilian sugar is usually absent from the global market.

Long-Term Policy Reforms

While welcoming the export approval, ISMA emphasised that the move offers only short-term relief. The association has urged the government to address structural issues related to the Minimum Selling Price (MSP) of sugar and ethanol pricing to ensure long-term sustainability.

“MSP has not been revised for the last five to six years and remains at ₹31 per kilo, while the cost of production is around ₹41–42,” Ballani said. ISMA has called for a revision of the MSP to stabilise domestic prices and safeguard farmers’ interests.

Ethanol Concerns: Low Allocation Hurting Viability

Highlighting the industry’s major investments in ethanol capacity, Ballani said that despite an investment of ₹40,000 crore to create around 900 crore litres of capacity based on NITI Aayog’s E20 blending projections. ISMA has recommended the following measures to strengthen the ethanol ecosystem:

• Reserve 50% of the ethanol allocation for sugar-based feedstock.
• Extend priority allocation beyond producing states.
• Restrict imports of denatured alcohol to protect domestic producers and ensure supply to the chemical industry.

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