Union Food Secretary Sanjeev Chopra told the news agency that India’s sugar mills diverted just 3.4 million tonne sugar for ethanol manufacturing in 2024-25, which was below the estimate of 4.5 million tonne. As a result, there are high opening stocks for the current marketing year that runs from October 2025 to September 2026, he said.
Sugar production for the period is estimated to reach around 34 million tonne against the annual domestic demand of 28.5 million tonne, Chopra told PTI. “We are definitely having a surplus of sugar… We are considering allowing exports,” he said, on being asked about the industry’s demands to allow exports and higher diversion for ethanol.Chopra hinted that a decision regarding the same may be out soon as the Centre looks at giving a longer window to the industry to plan for exports. A committee of ministers is likely to meet next week to make a decision regarding the same, PTI reported.
India exported around 8 lakh tonne sugar against its allocation fo 1 million tonne during the 2024-25 marketing year. “Currently, international prices are not too favourable for refined sugar. There may be some export parity possible for raw sugar,” Chopra told PTI on the feasibility of sugar exports.Ethanol is a liquid produced post the fermentation of sugars by yeast from sources such as sugarcane, or from other organic matter. The liquid is also used to create a biofuel via ethanol blending — the mixing of ethanol with petrol — to create a cleaner-burning and a sustainable fuel.
On another note, last month, the Centre permitted the production of ethanol from sugarcane juice, syrup and all types of molasses without any restrictions on volumes in 2025-26. In the previous marketing year, India had restricted production of ethanol due to a drop in sugarcane supplies. The Centre last month said it would periodically review sugar diversion to ethanol to ensure year-round domestic availability of the sweetener.
This policy shift is seen as a critical step towards balancing sugar supplies, while strengthening the ethanol blending programme.
Sugar stocks such as Bajaj Hindusthan, Shree Renuka Sugars, Triveni Engineering, EID Parry (India), Dwarikesh Sugar Industries, Dhampur Sugar Mills, among others gained up to 5% in trade on Wednesday and continued to trade with gains around 1.20 pm.
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