India's sugar sector wants lesser market barriers in western countries to increase exports

India’s sugar sector has urged the government to help remove market-access barriers in developed countries to boost sugar exports. Noting that major sugar consumers like the United States and Europe restrict Indian shipments through quantitative quotas, Madhav Shriram, Director at DCM Shriram Industries, said sugar is treated as a sensitive product and negotiated separately in Free Trade Agreements (FTAs). He added that the industry has highlighted the disadvantages facing Indian sugar exports and urged the government to secure better market access.

Expressing optimism about a healthy sugar season—with net production expected at 43 million tonnes—Shriram said the industry hopes to export 2 million tonnes of sugar, while diverting 1.5 million tonnes for ethanol. He called for sugarcane prices to be linked with sugar prices to ensure balance and timely payments to farmers, avoiding distress. He noted that the Ranganathan formula has been available for adoption in setting the Minimum Support Price (MSP), and with the latest Act passed in 2025, he expressed hope the government may support the sector through a revision in the floor price.

Shriram also said India’s achievement of 20% ethanol blending five years ahead of schedule has generated global interest, and the sector is now looking to further expand ethanol blending to absorb surplus sugar. He assured that the ethanol supplied is 99.9% pure and water-free, and cited studies indicating no issues for the automobile industry with blending levels up to 30%.