India exported 7.75 lakh tonnes of sugar during the 2024–25 marketing season, achieving over 75% of the government’s permitted export quota of 10 lakh tonnes. The exports, which span from October 2024 to September 2025, reflect strong demand across African and South Asian markets, according to the All-India Sugar Trade Association (AISTA).
Djibouti led the list of top importers with 1.46 lakh tonnes, followed by Somalia (1.35 lakh tonnes), Sri Lanka (1.34 lakh tonnes), and Afghanistan (75,533 tonnes). The majority of shipments comprised 6.13 lakh tonnes of white sugar, 1.04 lakh tonnes of refined sugar, and 33,338 tonnes of raw sugar. An additional 21,000 tonnes of raw sugar were categorised as deemed exports, having been supplied to Special Economic Zones (SEZs).
Policy consistency and export outlook
The government had allowed sugar exports for the 2024–25 season on January 20, 2025, setting a total ceiling of 10 lakh tonnes. The move balanced domestic price stability with export competitiveness. AISTA has urged the government to continue the policy in 2025–26 and to announce the next export quota by November 2025 to ensure smooth operations and long-term planning for millers.
The association also recommended retaining the same quota allocation and exchange mechanism used this season, citing its efficiency and fairness. The policy, which allows for inter-mill exchange of quotas, ensures optimal utilisation of production capacity and prevents regional imbalances.
Domestic supply and ethanol blending
India, the world’s second-largest sugar producer, is expected to maintain sufficient surplus stocks in the upcoming season, making continued exports feasible without affecting domestic consumption. Department of Food and Public Distribution Joint Secretary Ashwini Srivastava said the next season’s output outlook remains strong, with adequate supply to meet domestic demand and the requirements for ethanol blending.
A record 4.8 billion litres of ethanol is projected to be produced from sugarcane-based feedstock in 2025–26. This will further diversify millers’ revenue streams while supporting India’s ethanol blending programme, which targets 20% blending by 2025. Domestic sugar consumption is projected to rise modestly to 28.5–29 million tonnes in the new season, compared to 28 million tonnes in the previous year.
Global market and pricing trends
Favourable global sugar prices, coupled with steady production in India, have kept export margins viable. Analysts note that consistent government policy and predictable quotas are key to ensuring millers receive timely payments from sugarcane procurement and prevent cash flow pressures in the sector.
AISTA’s latest report also indicates improved logistical efficiency and reduced turnaround time at ports due to digital documentation and export facilitation measures. If the government maintains policy stability, India could potentially reach or exceed the 10 lakh tonne mark next season, strengthening its position in Asian and African sugar markets.