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

Export Plans from India

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

Expectations Regarding Export Permissions

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

Effects on the Market

The absence of an official announcement from the ministry means that the increase in exports could alleviate the stock pressure in the domestic market. However, directing additional supply to the global market could create downward pressure on international sugar prices.

Sugar Prices and Global Demand

New York futures sugar prices have dropped by 27% this year, falling to their lowest levels in recent years. This price decline has been influenced by increasing global production and weak demand from significant 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 permission for the export of 2 million tons. 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 government had signaled 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 reduced production from late rains.