Indian Sugar & Bio-Energy Manufacturers Association

Government’s Sugar Export Policy Boosts Cane Payments and Stabilizes Market

The government’s decision on January 20, 2025, to approve the export of 10 lakh tons of sugar for the 2024-25 season has provided a much-needed boost to the sugar industry. This timely intervention addresses concerns over excess sugar stocks and declining domestic prices, offering significant relief to the sector.
The export allowance has helped balance sugar inventories and provided financial stability to sugar mills, enabling them to make prompt cane payments. This move directly benefits 5.5 crore farmers and their families, ensuring the continued security of their livelihoods.

Following the announcement, sugar mills have accelerated payments to farmers. As of February 6, 2025, approximately 75% of cane dues have been cleared nationwide, compared to 68% before the export approval. In key sugar-producing states like Maharashtra and Karnataka, cane payments have risen to 84% and 66%, up from 77% and 55%, respectively.
This export decision has also positively impacted domestic market sentiments, stabilizing sugar prices. Moreover, the announcement has fostered a healthier demand-supply balance. As a result, sugar prices have seen an upward correction, bringing much-needed stability to the market.

The price stabilization benefits both sugar mills and farmers, ensuring fair and timely returns for their produce and strengthening the financial health of the sector. This positive market response also encourages continued investment and growth within the industry, fostering long-term sustainability.