India is set to uphold its one-million-ton sugar export quota for the current season, easing global concerns about potential export restrictions that recently drove up international prices.
Despite a decline in production, the world’s second-largest sugar producer will retain sufficient stockpiles through the season-ending 30 September, the source noted, requesting anonymity due to the confidential nature of the information. Domestic supplies are reportedly adequate to meet demand for over two months until the next crushing season begins.
India’s sugar exports for MY 2024/25 are projected at 3.7 MMT, as the government is expected to uphold export restrictions to prioritize domestic food needs and support sugar diversion for the Ethanol Blending Program. Consumption is forecast to hit 32 MMT, driven by festive demand, growth in the packaged food sector, increased use of sweets and confectioneries, and both organized and unorganized catering services.
Last week, speculation over possible curbs on sugar exports due to reduced output led to a spike in global prices. However, the source confirmed that India has no plans to restrict shipments.
Domestic sugar consumption is expected to be lower this year than the previous season, when demand surged due to national elections, particularly for sweets and beverages. Meanwhile, planting for the 2025–26 crop is progressing steadily in the major producing states of Maharashtra and Karnataka.
In January, the government allowed mills to export up to one million tons of sugar this season, easing a year-long restriction on overseas shipments. Historically, India has exported significantly higher volumes.
The Indian Sugar & Bio-energy Manufacturers Association observed that sugar prices at the factory gate in major producing regions, such as Uttar Pradesh and Maharashtra, have been declining since early March—an indicator of ample domestic availability. India’s food and commerce ministries have not responded to requests for official comment.
TRADE WORLD | Lula Visits Japan to Boost Trade Ties and Tackle Tariffs
