NEW DELHI: The All India Sugar Trade Association (AISTA) on Wednesday urged the government to allocate export quotas only to mills prepared to ship sugar from their own facilities, arguing that the current system slows exports and reduces profitability.
Under the present quota framework, limited export volumes are distributed among all mills based on past production. AISTA said this allows mills in remote locations—or those unwilling to export—to sell their quotas to others, often leaving a significant portion unshipped. This, the association noted, results in higher-than-desired sugar stocks at mills.
Sugar exports remain on the restricted list, with the government regulating volumes through proportional quota allocations.
AISTA also criticised the 50% export duty on ethanol imposed since January 15, 2024, saying it has not improved domestic availability as intended. The contribution from C-heavy molasses to India’s ethanol programme is still below 2%, the group said.
According to the association, the export restrictions have particularly hurt mills without distilleries, limiting their ability to export molasses and make timely payments to sugarcane farmers.
Between October 2024 and August 8, 2025, India exported 6.44 lakh tonnes of sugar, with Somalia being the top destination at 1.26 lakh tonnes. The government, which approved sugar exports for 2024-25 on January 20, capped total shipments for the marketing year at 10 lakh tonnes.
