ARTICLE 2 #SugarIndustry

The Food Ministry has allocated a domestic sugar quota of 24 lakh metric tonnes (LMT) for October 2025, starting from October 1. This is lower than the 25.5 LMT quota allocated for October 2024, though higher than September 2025’s quota of 23.5 LMT. Market watchers expect firm demand (especially with upcoming festivals) and foresee a price rise of ₹40‑50 per quintal in many regions.

The Maharashtra government’s ministerial committee has given the green light for the start of the sugarcane crushing season from November 1. However, it has raised concerns that this year’s excessive rainfall may impact sugar recovery rates, reported The Hindu Business Line.

Conversely, in India, authorities recently lifted restrictions that previously capped sugar use for ethanol production, which boosted sugar stocks and alleviated some pressure. If curbs persist without corrective measures, options like increasing imports, tapping buffer stocks, or policy intervention may be needed to prevent severe shortages.

India exported about 7.75 lakh tonnes of sugar during the 2024–25 marketing year (October to September), according to the All India Sugar Trade Association (AISTA). The government had allowed sugar exports starting January 20, 2025, with a cap of 10 lakh tonnes for the season.

The sugar industry is facing a growing crisis as a significant portion of harvested cane continues to arrive at mills already burnt, jeopardizing both sugar quality and export market access. According to industry officials, more than 60% of cane supplied to mills this season has been burnt, either deliberately or due to accidental fires in the fields.