New Delhi [India] August 1 : Timely approval of sugar exports and clear directives on sugar diversion for ethanol production are crucial for ensuring the long-term sustainability of sugar mills, said Indian Sugar and Bio-energy Manufacturers Association (ISMA) Director General, Deepak Ballani.
He stated that without these measures, excess sugar supply could lead to a domestic glut, resulting in falling prices and significantly impacting the profitability and operational viability of the industry.
Demanding the timely export approval and diversion for ethanol from the government, Ballani said, "It is very very important to have a balance between sugar and ethanol. so there has to be a proper diversion because we will have 35 million as a gross production and our domestic consumption is going to be around 28.3-28.4 million tons so it is very important to divert around four and a half to five million tons to ethanol so that the sugar stocks are maintained and also exports of around two million and there will be a balance between exports, ethanol and sugar," he added.
He said any delay in approvals will impact sugar mills negatively. Recently, Crisil Ratings pointed out that profitability gains will be limited if ethanol prices and sugar exports remain stagnant.
"If you don't have a proper diversion or if the exports are not announced on time there will be too much sugar in the country creating a glut so that will bring the domestic prices down, affecting the viability of the mills' profitability," he added.
Indian Sugar Mills Association predicted that the total acreage under sugarcane in the country is estimated to be around 57.24 lakh hectares in 2025-26 sugar season against 57.11 lakh hectares in 2024-25, marginally higher than last year.
The abundant rainfall received in May was particularly beneficial, enhancing soil moisture and supporting early crop growth.
Speaking about the factors supporting increments in the sugarcane production, he said increased yield in Maharashtra and Karnataka, crop area increase and improvement in recovery are significantly improving the outlook.
ISMA has released its 1st preliminary sugar production which indicates increase in gross sugar production (before diversion) by 18 per cent to around 349 lakh tons against 295 lakh tons produced last year.
In response to a question on 25 per cent US tariff impact on India's food processing and allied sectors where sugar is a major substance, Ballani stated that strong economy and efforts on the policy front will overcome challenges imposed by the US on export of Indian goods.
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