Union Minister of Consumer Affairs, Food and Public Distribution, Pralhad Joshi, announced the decisions in a letter to Karnataka Chief Minister Siddaramaiah on Friday, highlighting the government’s commitment to support the sector amid projections of strong sugar production.
The Center has decided to allow export of 15 lakh tonnes of sugar for the current 2025-26 season, with an aim to improve realizations for mills and enable faster payments to sugarcane farmers. Along with this, 50 per cent export duty on jaggery has been removed, which is expected to provide further support to mills and by-product markets.
Sugarcane Farmers Protest
Amid the ongoing agitation by sugarcane growers in the state, the Union Food Minister in a recent letter to Karnataka Chief Minister Siddaramaiah Prahlad Joshi Said that for the current sugar season, the Central Government has decided to allow export of 15 LMT sugar and remove 50 percent export duty on jaggery.
However, Joshi did not give any timeline as to when sugar exports would come into effect. Industry stakeholders believe that additional export clearance and rationalization of duties will help mills improve liquidity and clear cane dues faster.
Sugarcane Farmers Protest Impact
“Ex-mill prices of sugar in Karnataka have already increased from around ₹3,370 per quintal to ₹3,700-3,930 per quintal following similar measures last season,” Joshi said underlining the positive impact on farmers’ dues.
The move comes as the Indian Sugar Mills Association (ISMA) has projected an 18.5% increase in net sugar production for the upcoming season to 30.95 million tonnes, including diversion of about 3.4 million tonnes for ethanol production.
The sugar industry was demanding that the government allow export of 20 lakh tonnes of sugar for the 2025-26 season.
For the 2024-25 season, the Center had similarly allowed 15 lakh tonne sugar exports, continuing policy measures that have stabilized the sector following ethanol diversion restrictions introduced in December 2023.
The decision to eliminate the 50 per cent export duty imposed on jaggery in January 2024 to prioritize domestic ethanol blending and curb inflation marks a notable policy shift.
