India Eases Sugar Export Restrictions for 2024-25 Season

The Indian government has approved the export of 1 million tonnes of sugar for the 2024-25 season, aiming to stabilize domestic prices and support the industry's liquidity. This move is expected to aid 50 million farmer families and 500,000 workers as India's sugar production faces a projected decline.

On Monday, the Indian government announced it would allow the export of 1 million tonnes of sugar for the 2024-25 season, which concludes in September. The decision aims to stabilize domestic prices and bolster the sector, benefiting 50 million farmer families and 500,000 workers, according to Food Minister Pralhad Joshi.

The export allowance is designed to boost the liquidity of sugar mills, ensuring timely payment of cane dues while balancing local availability and prices. The Food Ministry's order grants permits for the export of all sugar grades within set allocations. New mills starting or restarting production in 2024-25 also received export quotas.

Mills are permitted to export directly or via merchant exporters by September 30, with the option to surrender or swap quotas by March 31 to minimize transportation costs. The Advance Authorisation scheme will proceed under current conditions as Indian sugar production is expected to fall to 27 million tonnes, below projected domestic needs.

(With inputs from agencies.)