Around 320-325 lakh tonne sugar production is expected before diversion of ethanol for the current 2025-26 marketing year, ending September, Union Food Secretary Sanjeev Chopra told media persons here.

Sugar prices have remained stable and rates are unlikely to jump going forward because of sufficient domestic supply, he said adding that the global prices have firmed up because of the West Asia conflict, improving chances of exports from India.

Still it would be "challenging" for mills to export the 15 lakh tonne quota approved by the food ministry for the current 2025-26 sugar marketing year (October-September), he said.

On sugar industry's demand to raise minimum selling price (MSP) of sugar from Rs 31 per kg, he said the food ministry is considering the proposal.

On demand to increase ethanol blending in view of current West Asia crisis and rise in crude oil prices, Chopra said, "There is a demand from industry to increase the blending of ethanol into petrol from the current 20 per cent. We have a surplus capacity of ethanol manufacturing at 2,000 crore litre."

A panel comprising officials have set up to explore to increase blending of ethanol. Based on the committee report government will take a decision on it, he said.

He also clarifies that no plan to reduce import duties on edible oils.

The secretary said wheat crops, being currently harvested, are good this year and the government may relax quality norms for procurement of food grain in view of recent rains.

Separately, Indian Sugar & Bio-Energy Manufacturers Association (ISMA) said that

India's sugar demand is estimated to fall by 4 lakh tonnes during the March-April period due to short supply of commercial LPG and rainfall in some parts of the country.