India Plans to Export 1.5 Million Tons of Sugar in the 2025-26 Season.

Export Plans from India

India is considering allowing 1.5 million tons of sugar exports in the 2025-26 season. This move stands out as a strategy aimed at balancing the potential surplus in the domestic market due to high yield expectations.

Expectations Regarding Export Permits

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

Market Impacts

The lack of an official statement from the ministry indicates that the increase in exports could ease the stock pressure in the domestic market. However, the additional supply directed toward the global market may create 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 increasing global production and weak demand from major importing countries like 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 ton export permit. This aims to prevent a potential surplus in the domestic market and to seize opportunities before the new crop from Brazil, the world's largest sugar producer, hits the market in April 2026.

Traces of the Past and Future Perspective

The New Delhi administration gave signals in its statements made in September that exports could be increased in the 2025-26 season. On the other hand, India had transitioned to an export quota system during the 2022-23 period due to production reductions caused by late rains.