Global market conditions are not favorable for sugar exports

19-Feb-2026 05:41 PM

Mumbai. Although the central government has increased the sugar export quota from 1.5 million tons to 2 million tons for the current marketing season (October-September) of 2025-26, subject to certain conditions, industry and trade analysts say that global market conditions are not entirely favorable for sugar exports from India.

The new sugarcane crushing and sugar production season is set to begin in April in the central southern region of Brazil, the world's leading producer and exporter, and despite a slight decline, total sugar production is estimated to be around 40 million tons.

In addition, sugar production in Thailand, China, and the European Union is also expected to improve, which will significantly ease supply and availability in the global market and may keep prices under pressure.

Although the ex-factory selling price of sugar has declined significantly in Maharashtra and Karnataka, it has not yet fallen to a level sufficient to ensure uninterrupted exports. The global market price of sugar remains soft.

The government has established that sugar from the additional export quota of 500,000 tonnes will be allocated only to those willing mills that are able to ship at least 70% of the allocated sugar from the pre-determined quota of 1.5 million tonnes by June 2026. The additional quota must also be exported by September 30, 2026. The industry believes that this quota may not be needed for sugar exports.