India approves 15M tonne sugar exports for 2025-26 as industry seeks higher MSP
India raises sugar export quota while reviewing industry calls for a higher minimum selling price.
INDIA – India’s Union Food and Consumer Affairs Minister Pralhad Joshi has announced that the Centre has cleared exports of 15 lakh tonnes of sugar for the 2025-26 marketing year, which begins in October.
The decision comes as the government assesses industry calls to revise the minimum selling price (MSP) of sugar, which has remained unchanged at Rs 31 per kilogram since February 2019.
Speaking to reporters, Joshi said the government would evaluate how the increased export quota affects domestic prices before considering any adjustment to the MSP.
In the 2024-25 season, the Centre had authorised exports of 10 lakh tonnes, keeping prices stable throughout the period. Actual exports for that year stood at about 8 lakh tonnes.
The Indian Sugar & Bio-Energy Manufacturers Association (ISMA), the country’s apex sugar industry body, has urged the government to increase the MSP to at least Rs
40.2 per kilogram.
The association argues that rising production costs, driven largely by higher sugarcane prices, necessitate a revision.
The fair and remunerative price (FRP) of sugarcane has risen by 29 percent, from Rs 275 per 100 kilogram to Rs 355 per kilogram for 2025-26, pushing estimated production costs to Rs 40.24 per kilogram.
A senior food ministry official noted that the government would review the MSP request, adding that the FRP increase has placed additional pressure on mill margins. ISMA has also recommended that the Centre establish a formal linkage mechanism between FRP and MSP to maintain market stability and ensure timely payments to farmers.
The industry body has projected gross sugar production for 2025-26 at 343.5 lakh tonnes before diversion to ethanol, up from 296 lakh tonnes in the previous year. The increased output, combined with a higher export quota, is expected to influence pricing and supply dynamics in the months ahead.
The government’s decision marks a significant step in shaping the upcoming marketing year, with further policy adjustments expected after reviewing market responses to the expanded export allowance.
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