Sugar industry gets its sweet spot back

India’s sugar industry, which has been grappling with surplus stock and challenges related to ethanol price determination, has received significant policy relief

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India’s sugar industry, which has been grappling with surplus stock and challenges related to ethanol price determination, has received significant policy relief. The central government has recently announced two major policy decisions for the 2025-26 season. First, it has approved sugar exports, and second, it has removed the export duty on molasses.

On November 7, Union Food Minister Pralhad Joshi wrote to Karnataka Chief Minister Siddaramaiah, informing him that the government has approved the export of 1.5 million tonnes of sugar for the 2025-26 sugar season, which began in October. The decision aims to protect the interests of sugarcane farmers and improve cash flows in the sugar industry. Alongside this, the Centre has also abolished the 50% export duty on molasses.

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