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 is seen as a strategy to balance the potential surplus in the domestic market due to high yield expectations.

Expectations Regarding Export Permits

According to information obtained by Bloomberg, India's Food Ministry is expected to announce its decision regarding export permits 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 suggests that the increase in exports could relieve stock pressure in the domestic market. However, directing additional supply to 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 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 the export of 2 million tons. This is aimed at preventing a potential surplus in the domestic market and seizing 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 government 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 caused by late rains.