India plans to export 1.5 million tons of sugar in the 2025-26 season.

Export Plans from India

India is considering allowing the export of 1.5 million tons of sugar in the 2025-26 season. This step stands out as a strategy to balance potential surplus in the domestic market due to high yield expectations.

Expectations Regarding Export Permit

According to information obtained by Bloomberg, India’s Food Ministry is expected to announce its decision regarding the export permit soon. This export volume will be above the 1 million tons export quota set for the 2024-25 season.

Impact on the Market

The lack of an official statement from the Ministry implies that the increase in exports could alleviate stock pressure in the domestic market. However, the orientation of additional supply to the global market may exert downward pressure on international sugar prices.

Sugar Prices and Global Demand

New York futures sugar prices have fallen by 27% this year, reaching their lowest levels in recent years. This price decline has been influenced by the increasing global production and weak demand from significant importing countries such as Indonesia and China.

Export Demands and Strategic Goals

The Indian Sugar and Bioenergy Producers Association (ISMA) had called on the government to grant a 2 million tons export permit. This is aimed at preventing potential surplus in the domestic market and capitalizing on opportunities before the new crop from the world's largest sugar producer, Brazil, hits the market in April 2026.

Traces of the Past and Future Perspective

The New Delhi administration signaled in announcements made in September that exports could increase in the 2025-26 season. Furthermore, India had transitioned to an export quota application in the 2022-23 period due to reduced production caused by late rains.