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 step emerges as a strategy to balance the potential excess supply in the domestic market due to high harvest expectations.

Expectations Regarding Export Permission

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

Effects on the Market

The lack of an official announcement from the Ministry indicates that the increase in exports could alleviate the stock pressure in the domestic market. However, the additional supply heading towards 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 the lowest levels in recent years. This price decline has been influenced by increasing global production and weak demand from major importing countries such as Indonesia and China.

Export Demands and Strategic Goals

The Indian Sugar and Bioenergy Producers Association (ISMA) has called on the government to grant permission for 2 million tons of exports. This aims to prevent potential excess supply in the domestic market and capitalize on 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 signaled in its statements in September that exports could be increased in the 2025-26 season. Additionally, India had transitioned to an export quota system in the 2022-23 period due to reduced production caused by late rains.