AISTA urges Government to Revise Sugar Export Quota System

Top news from sugar industry (August 13, 2025)

1. Sugar exports– The All India Sugar Trade Association (AISTA) has urged the Indian government to revise its sugar export quota system. AISTA argues that the current system of allocating limited export quotas proportionally to all mills, regardless of their willingness to export, leads to inefficiencies and un exported sugar. AISTA proposes that quotas only be allocated to mills willing to ship from their own facilities. AISTA also criticized the 50% export duty on ethanol, stating it has not helped to boost ethanol exports.
2. Nigeria secures deals for 400,000 MT of local sugar production
   The National Sugar Development Council (NSDC) signed agreements with four new operators to establish greenfield sugar projects, aiming for an annual output of 400,000 tonnes.
3. Global compressible sugar market forecast to grow to USD 4 billion by 2035
   A new market analysis projects a CAGR of 9.6% over the next decade, driven by demand from pharmaceutical and food & beverage sectors.
4. Sugar futures see modest increase in open interest
   Trading on ICE showed 63,047 contracts traded by 10:00 AM on August 13, with open interest rising by 1,538 contracts—suggesting steady investor activity.
5. Experts call for innovation in sugar industry via by-products
   A South African editorial notes that pressures such as a 30% U.S. tariff and sugar taxes highlight the need for the industry to innovate and develop by-product revenue streams.
6. 229 cooperative sugar mills produce 30% of India’s sugar
   Union Minister Amit Shah revealed in the Lok Sabha that India’s 229 functional Cooperative Sugar Mills contribute around 30% of national sugar output—but face financial challenges, which could be mitigated through ethanol production.
7. Cuba experiences yet another disastrous sugar harvest
   The 2025 harvest in Cuba is reportedly the worst yet, falling below 150,000 tonnes—an even sharper decline than the prior season’s poor total of roughly 160,000 tonnes.
8. U.S. sugar production oversupply shrinking margins despite record output
   U.S. sugar production reached a record 9.3 million short tons in 2024–25. However, margins are under pressure due to oversupply, shifting demand, and additional challenges like greenwashing lawsuits and policy risks.
9. Sugar prices surge amid fears of Brazil cane yield decline
   Market sentiment remains bullish as sugar prices posted their longest consecutive rise since February 21, fueled by concern over declining cane yields in Brazil.
10. Maharashtra ethanol production Maharashtra’s ethanol production is anticipated to reach 140 crore liters in the next year, according to a sugar industry representative.