India's Sugar Industry Calls for Timely Export Approvals and Ethanol Diversion

The Indian sugar industry is sounding the alarm about potential market disruptions if timely measures are not taken to manage the sugar supply. According to Deepak Ballani, Director General of the Indian Sugar and Bio-energy Manufacturers Association (ISMA), the industry's long-term sustainability hinges on the swift approval of sugar exports and clear guidelines for diverting sugar to ethanol production.

Ballani emphasized the critical need to strike a balance between sugar and ethanol outputs, warning of a potential glut as production is projected to reach 35 million tons. With domestic consumption estimated at around 28.3-28.4 million tons, ISMA calls for the diversion of 4.5 to 5 million tons to ethanol and the export of approximately 2 million tons to stabilize the market. Any delay in government approvals could negatively affect sugar mills, reducing profitability and viability.

The Indian Sugar Mills Association projects an increase in sugarcane acreage and production, driven by favorable weather and enhanced agricultural practices. ISMA's preliminary production data forecasts an 18% rise in gross sugar output to 349 lakh tons. Despite potential impacts from U.S. tariffs on India's food processing sector, Ballani remains confident that a robust economy and strategic policy efforts will mitigate these challenges.

(With inputs from agencies.)