ISMA urges government to seek better market access for Indian sugar in restricted economies

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has called on the government to push for better market access for Indian sugar in countries that impose trade restrictions, particularly the United States and the European Union.

Madhav Shriram, Executive Committee Member of ISMA, told CNBC-TV18 that despite Free Trade Agreements (FTAs) with several countries, sugar continues to face severe limitations in export markets. “What we do with other countries where FTA is there, sugar is discussed in a separate bracket, because it is a very sensitive product,” he said.

Shriram added that major sugar-consuming nations have imposed quantitative quotas that prevent Indian exporters from expanding their market share. “European countries and the US, who are large consumers of sugar, actually have quantitative quotas, and they don't allow us to sell more sugar into their countries, so we are at a disadvantage,” he explained.

He said the industry body is engaging with the government to explore how India can access such restricted markets more effectively.

The comments come at a time when the government is reportedly considering allowing sugar exports in the 2025-26 marketing year amid rising domestic stocks. According to news agency PTI, the Centre is reviewing the export policy as surplus sugar has built up due to lower-than-expected diversion for ethanol production.

Union Food Secretary Sanjeev Chopra recently said that only 3.4 million tonnes of sugar were diverted for ethanol manufacturing in 2024-25, compared with an earlier estimate of 4.5 million tonnes. This has led to higher opening stocks for the current marketing year that runs from October 2025 to September 2026.

India exported around 8 lakh tonnes of sugar during the 2024-25 marketing year against an allocation of 1 million tonnes.