sugar-trade-body-seeks-revision-of-centre-s-export-quota-rules

The All India Sugar Trade Association (AISTA) has said the government’s current export quotas allocation allows remote or export-reluctant mills to sell their quotas to others, leaving substantial quantities left not exported and leading to higher-than-desired stock of sugar with mills.

The trade body association requested the Centre on Wednesday to allocate export quotas only to those mills that are willing to ship from their own facilities, saying the current system hurts mills’ profitability.

Explaining the current quota system, body representatives said the existing quota system distributes limited export allocations to all mills based on their past production capacities, which ultimately allows remote or even export-reluctant mills to sell their quotas to others.

 

Also Read: India’s sugar stock enough to meet domestic demand: NFCSF

“This leads to mills located at remote places or not interested in exports to sell their export quotas to others. A substantial quantity even remains unexported, resulting in a higher-than-desired stock of sugar with mills,” said the body statement. 

Additionally, AISTA has also criticised the government’s 50 per cent export duty imposed on ethanol since January 15, 2024, saying it has also failed to boost local supply as was originally intended.

Sugar exports, which are currently on a restricted list, with the government controlling volumes through quotas distributed proportionally among mills is also not meeting its intended purpose, the body added.

AISTA also criticised the 50 per cent export duty imposed on ethanol since January 15, 2024, saying it has failed to boost local supply as intended since the contribution from C-heavy molasses to India’s ethanol programme remains below 2 per cent.

India exported 6.44 lakh tonnes of sugar through August 8 in the 2024-25 marketing year (October to September), with Somalia receiving the largest shipments of 1.26 lakh tonnes, according to AISTA data.

Meanwhile, the government permitted sugar exports for 2024-25 on January 20, 2025, allowing total shipments of 10 lakh tonnes for the marketing year.

The trade body has also argued that restricted exports have hurt mills without distilleries even more, having impaired their ability to export molasses and making timely payments to sugarcane farmers.