Why are Indian sugar mills asking for export increases?

Sugar mills are seeking increased export quotas to manage a surplus in domestic production, which is driving down prices.

What is the NFCSF's request regarding ethanol?

The NFCSF has requested that an additional five lakh tonnes of sugar be diverted towards ethanol production.

How does sugar overproduction affect farmers in India?

Overproduction can lead to financial stress for sugar mills, potentially delaying or reducing payments to sugarcane farmers.

Home / Business and Economy / India's Sugar Glut: Mills Demand Export Hike

India's Sugar Glut: Mills Demand Export Hike

17 Dec

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Summary

Sugar production is rising sharply, leading to price concerns for mills.
Federation urges increased sugar exports and ethanol diversion.
Mill finances are stressed, risking farmer payments.

India's Sugar Glut: Mills Demand Export Hike

Sugar production is projected to surge significantly this 2025-26 season, prompting the National Federation of Cooperative Sugar Factories Limited (NFCSF) to call for urgent government intervention. The federation has formally requested an elevated sugar export quota and the diversion of an additional 500,000 tonnes of sugar for ethanol production. These measures are intended to counteract falling domestic prices and stabilize the market.

Millers are concerned about the potential for depressed prices due to this surplus sugar. They argue that current Minimum Selling Prices (MSP) do not cover escalating production costs, including higher cane prices and energy expenses. This squeeze on ex-mill sugar prices is eroding profit margins and intensifying a liquidity crisis for cooperative sugar factories.

The NFCSF emphasizes that government action on exports, ethanol diversion, and MSP revision is critical. Such support would not only stabilize the sugar market but also bolster mill viability and safeguard the financial interests of sugarcane farmers during this challenging period for the sector.