Lok Sabha Question No. 1633 (UNSTARRED), answered on 2025-12-10
Subject: Sugar Exports
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Vijayakumar Alias Vijay Vasanth, Shri Manickam Tagore B, Shri Suresh Kumar Shetkar

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 1633

TO BE ANSWERED ON 10TH DECEMBER, 2025

## SUGAR EXPORTS

1633.  SHRI VIJAYAKUMAR  IE/dS  VIJAY VASANTH: SHRI MANICKAM  TAGORE B : SHRI SURESH KUMAR  SHETKAR:

Will  the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state :

- (a) whether the export allocation  for  the 2025-26 sugar season has been capped at  1.5 million tonnes despite industry  demand for  2  million tonnes and if  so, the  reasons for  ignoring  industry rnputs;
- (b) whether the Government has removed fifty  percent export duty on molasses and if  so, the details of the estimated revenue loss to the exchequer and the manner in which the Government justify this in terms of fiscal prudence;
- (c) whether the  specific measures  being  taken  by  the  Government to  ensure  the  sugarcane farmers receive fair  prices amid  surplus production and rising  exports and if  so, the details of measures and if not, the reasons therefor;
- (d) whether sugar diversion to ethanol is falling  short (3.4 MT  vs 4.5 MT)  and if  so, the details of the steps taken by the Government to meet future ethanol targets; and
- (e) whether it  is a fact that expected ethanol production  of  34 MT  against domestic demand  of 28.5 MT  and if  so, the details of the steps taken by the Government  to manage the excess 5.5 MT  to prevent price crashes and wastage?

## ANSWER

MiNISTER  OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIM ATI NIMUBEN JAYANTIBHAI  BAMBHANIYA)

- (a): The Government's priority  is to  ensure sufficient  availability  of  sugar for  consumption in the domestic market at a reasonable price. Thereafter, the surplus sugar is to be diverted to  ethanol followed by export. Keeping in view the initial  production estimates for the current Sugar Season 2025-26, Government has permitted export of  15 LMT  of sugar.
- (b): Imposition of  50% export duty on molasses was intended as a temporary intervention keeping in view the less sugarcane production during previous Sugar Seasons (Oct-Sep) 2023-24 & 2024-25, which would have led to the shortage of  feedstock for  ethanol production and other Industrial uses. Now, keeping in view  the production estimates of current Sugar Season 2025-26, adequate molasses will  be available in the country for ethanol production and other requirements. Accordingly,  the Government has removed 50% export duty on molasses w.e.f  14.11.2025 .

(c): To manage the surplus sugar, improve the liquidity  of  sugar mills  and to ensure the timely payment to sugarcane farmers, Government has allowed export of  15 LMT  of  sugar during the Sugar Season 2025-26.  Further, the government has removed 50% export duty on molasses which will  improve the liquidity  of sugar mills  and help in timely  payment to sugarcane farmers.

(d) &  (e): Out  of the total  allocation  of  1048 crore litres  ethanol by the Oil  Marketing  Companies (OMCs), about 289 crore litres has been allocated to  sugarcane-based feedstock resulting in  the diversion  of about 34 LMT  of  sugar to ethanol.  Government has also allowed export of  15 LMT sugar to manage excess sugar to prevent ex-mill  price crashes.

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