COMMODITY
ISMA urges govt to allow execution of already-concluded export contracts
May-15-2026

Sugar industry body -- the Indian Sugar & Bio-energy Manufacturers Association (ISMA) has urged the government to allow execution of already-concluded export contracts, even as the government imposed a ban on overseas sugar shipments effective May 13 through September 30. ISMA, while acknowledging the rationale behind the government's move, said the abrupt nature of the restriction could create practical difficulties for mills that had entered into binding commitments with foreign buyers.

ISMA Director General Deepak Ballani said ‘Permitting execution of already concluded contracts may help facilitate orderly trade settlement and support the credibility of Indian suppliers in the global market’. For the current sugar season 2025-26 (October-September), the Food Ministry had initially permitted exports of 1.5 million tonnes, subsequently opening an additional 500,000-tonnes window of which only 87,587 tonnes received approval.

ISMA noted that exports were originally cleared in November 2025 on the basis of optimistic production estimates. However, output in key cane-growing states, particularly Maharashtra and Uttar Pradesh, fell short of projections due to lower-than-expected yields and adverse weather conditions. Despite the shortfall, ISMA maintained that the current season remains broadly balanced, with the country expected to close with adequate stocks by season-end. ISMA said it continues to examine further implications of the export order in consultation with member mills.

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