**Executive Summary**
This document is the answer to Unstarred Question No. 1633 in Lok Sabha, to be answered on December 10th, 2025, regarding Sugar Exports. The response details the Government's policy on sugar exports, molasses export duty, ethanol production, and measures to support sugarcane farmers. Key dates include the effective date of the removal of the export duty on molasses (November 14, 2025).
**Key Points / Main Content**
* **Sugar Exports for 2025-26:**
* The Government has permitted the export of 1.5 LMT of sugar for the 2025-26 sugar season.
* The Government prioritizes sufficient sugar availability in the domestic market at a reasonable price, followed by diversion to ethanol and then export.
* Government has allowed export of 15 LMT of sugar to manage the surplus sugar to ensure timely payment to sugarcane farmers.
* **Molasses Export Duty:**
* The 50% export duty on molasses was initially imposed as a temporary intervention due to less sugarcane production in previous sugar seasons (2023-24 & 2024-25).
* The Government has removed the 50% export duty on molasses, effective November 14, 2025.
* This decision was made as adequate molasses is expected to be available for ethanol production and other requirements due to current sugar season production estimates.
* **Ethanol Production and Sugarcane Farmers:**
* Out of the total allocation of 1048 crore liters of ethanol by OMCs, about 289 crore liters have been allocated to sugarcane-based feedstock.
* This will result in the diversion of about 34 LMT of sugar to ethanol.
* The measures improve the liquidity of sugar mills and help in timely payment to sugarcane farmers.
**Impact Analysis**
**Sugarcane Farmers**
* **Impact:** Benefit from timely payments due to improved liquidity of sugar mills.
* **Action Required:** No specific action required.
**Sugar Mills**
* **Impact:** Improved liquidity due to permitted sugar exports and removal of molasses export duty.
* **Action Required:** No specific action required.
**Oil Marketing Companies (OMCs)**
* **Impact:** Allocated 289 crore litres of ethanol to sugarcane-based feedstock.
* **Action Required:** Manage the sugarcane-based feedstock and diversion of sugar to ethanol accordingly.
**Domestic Sugar Consumers**
* **Impact:** Ensured sugar availability at reasonable prices.
* **Action Required:** No specific action required.
Key Entities Referenced
Ministry of Consumer Affairs, Food & Public Distribution: The primary government body responsible for policies related to sugar exports, domestic availability, and ethanol production.
Sugar Season 2025-26: The period for which the sugar export allocation, export duties on molasses, and other interventions are being considered.
Ethanol Production: The policy discusses diverting surplus sugar to ethanol production as a key component of the government's strategy.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
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 .-2-
(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.
RSc SeRIeSc