Global Sugar Prices Ease on Hopes of Higher Indian Output

06-Nov-2025 01:30 PM

New York. Global sugar prices declined slightly yesterday. Raw sugar futures for March delivery on the New York Exchange fell 0.11 cents per pound, or 0.77 percent, to their lowest level in nearly five years. Similarly, white sugar futures for the December contract on the London Exchange fell $0.70 per tonne, or 0.17 percent.

Global futures prices were impacted psychologically by forecasts of improved production for the 2025-26 marketing season in India, the world's second-largest sugar producer after Brazil.

The apex industry body, ISMA, increased India's sugar production target for the 2025-26 season from 30 million tons to approximately 31 million tons, representing an increase of approximately 4.9 million tons, or 19 percent, from the 26.1 million tons projected for the 2024-25 season.

On the other hand, ISMA has reduced its estimate for sugarcane (sugar) use in ethanol production from 5 million tons to 3.4 million tons. This could help India's sugar exports. ISMA has urged the government to allow the export of 2 million tons of sugar for the 2025-26 season.

Increased selling pressure by investors on futures exchanges has led to a softening of futures prices. White sugar futures prices on the London Exchange have fallen to their lowest level in the last five and a quarter years.

Brazil is continuing to experience robust production, while new production is also about to begin in Thailand. Global sugar production in the 2025-26 season is projected to exceed consumption, which could lead to a slight increase in backlog stocks at the end of the season.

Production in Brazil is expected to improve. Analysts say that global sugar futures prices remain under pressure. If the Indian government allows the export of 2 million tons, further pressure on prices could increase.