Food Secretary Sanjeev Chopra has expressed optimism about India’s upcoming sugarcane crop, noting that yield and production prospects look significantly better than last year. At the same time, he urged sugar industry bodies to arrive at a consensus on the contentious issue of export quota allocation.
“We have sought the views of the industry. They should develop a consensus among themselves, and then they should come to us,” Chopra told PTI, adding that the government will take a “holistic view” once recommendations are received.
Currently, sugar exports are tightly regulated through quotas distributed among mills. However, industry groups like the All-India Sugar Trade Association (AISTA) argue that the system allows mills unwilling or unable to export to sell quotas to others, leaving large quantities unshipped. Industry stakeholders are now pressing for allocations to be restricted to mills that export directly.
On the ethanol front, Chopra confirmed that the government has lifted restrictions on the diversion of sugar for ethanol production, permitting mills to use sugarcane juice, syrup, and B-heavy molasses without caps for the 2024–25 Ethanol Supply Year. Broken rice has also been approved as feedstock, with 5.2 million tonnes allocated, although off-take so far has fallen short at around 3 million tonnes.
Despite industry requests to revise the ex-mill ethanol prices from B-heavy molasses and sugarcane juice/syrup, Chopra clarified that pricing decisions rest with the Ministry of Petroleum and Natural Gas, which last adjusted rates in November 2022. Prices remain unchanged at ₹60.73 per litre for ethanol from B-heavy molasses and ₹65.61 per litre from sugarcane juice/syrup.
While final production estimates await confirmation from the Agriculture Ministry, Chopra maintained that sugar output for the current 2024–25 season “looks good as of now,” with the new crop expected to be even stronger.