Exports of sugar from the country have been de-canalized since 1997, enabling sugar mills to undertake exports on their own and to compete directly in the international market. Further, exports from a mill do not form part of the quota under the market quota release system.

Despite this, India has not been a consistent exporter of sugar in the past. It has been exporting sugar occasionally in periods of sugar surpluses. In the last five years it exported 4.07 MMT sugar. In these years, India had an average exportable surplus of 6.23 million tones every year.

As against this, on an average, the sugar exported was only 0.81 MMT or 7.69% of the total exportable surplus. This is primarily because domestic prices have remained higher than international prices. However, should quotas for LOME / APEC for India increase; there will be enough incentive for Indian manufacturers to export.

EXPORTABLE SURPLUS, SUGAR STOCK & ACTUAL EXPORTS