India’s sugar exports slow as domestic prices rise
INDIA – Indian sugar mills have signed contracts to export 600,000 metric tons of sugar in the 2024/25 marketing year, which ends in September.
However, rising domestic prices have made mills hesitant to finalize additional export deals, according to industry officials, reports The Economic Times.
India, the world’s second-largest sugar producer, has seen a slowdown in exports, a trend that could support global sugar prices, which are currently near their lowest levels in three years.
The country had halted sugar exports last year to stabilize local prices but later allowed the export of 1 million tons in January 2025 to help mills sell surplus stock.
“However, with domestic sugar prices rising and expected to increase further due to lower production and high summer demand, exports have slowed this month after a brief pick-up in the previous month,” said a Mumbai-based dealer with a global trading firm.
India’s sugar production for the 2024/25 season is estimated to drop to 25.8 million tons, while annual consumption is around 29 million tons.
The production estimate was revised downward by 0.72 million tons from the initial forecast of 26.52 million tons, mainly due to lower output in Maharashtra, Tamil Nadu, and Gujarat.
Sugar demand typically rises between mid-March and mid-June, driven by increased consumption of cold drinks and ice cream during the summer months.
Mills have already shipped about 250,000 tons of the 600,000 tons contracted since January, according to a New Delhi-based dealer.
Meanwhile, domestic sugar prices are nearly US$20 per ton higher than London futures, making higher-quality Brazilian sugar more attractive for buyers at a similar price.
India has traditionally exported sugar to countries including Afghanistan, Bangladesh, Indonesia, Sri Lanka, and the UAE. Between 2018 and 2023, India was the world’s second-largest sugar exporter, averaging 6.8 million tons annually.
Despite the slowdown, Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd., remains confident that mills will meet the full 1 million-ton export quota.
“Mills have ample time to make exports happen. They can sell sugar anytime at a favorable price until the end of September,” Naiknavare stated.
Meanwhile, India’s sugar mills owe farmers Rs 291 crore (US$33.37M) in unpaid dues over the past three years, with Rs 28 crore (US$3.2M) belonging to farmers in Punjab, according to Minister of State for Consumer Affairs, Food, and Public Distribution Nimuben Jayantibhai Bambhaniya.
As of the 2024-25 sugar season (October 2024 to September 2025), total outstanding dues across 13 states have reached Rs 15,504 crore (US$1.78B), with Punjab farmers owed Rs 751 crore (US$86.13M).
The government has taken steps to reduce overdue payments, resulting in 99.9 percent of cane dues being cleared up to the 2023-24 season. As of March 5, 2025, over 80 percent of the dues for the current season have already been settled.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
