India to Gain from Rising Global Sugar Prices
21-Jul-2025 03:48 PM
Mumbai. Sugar prices are improving in the global market on the back of strong demand from China and some other countries. The futures price of raw sugar on the New York Exchange for October delivery has improved by 0.12 cents per pound or 0.72 percent to reach a high of one and a half months and the futures price of white sugar on the London Exchange has improved by 4.30 dollars per tonne or 0.89 percent to reach a high level in the last two and a quarter months.
During the month of June, sugar imports from China jumped more than 14 times to 4.20 lakh tons. According to the US President, Coca Cola Company has agreed to use sugar made from sugarcane instead of high fructose corn syrup in the Coke beverages sold in the US, due to which the annual consumption of sugar in the domestic sector is expected to increase by 5 lakh tons or 4.4 percent from the current level of 110 lakh tons to 115 lakh tons.
Decreasing production in Brazil is also supporting the sugar prices. According to the report of UNICA, the top industry body of Brazil, the leading producer and exporter of sugar, sugar production in the central southern part of the country declined by 14.3 to 122.49 lakh tonnes by the end of June during the 2025-26 season as compared to last year.
Last month, Brazil's government agency CONAB said that domestic sugar production fell by 3.4 percent to 441.18 lakh tonnes during the 2024-25 season as the sugarcane yield rate decreased due to extremely dry and hot weather and drought. It is worth noting that there was a softening environment in the global market price of sugar for the last three months.
At the beginning of the current month, the futures price of sugar fell to a low of four and a quarter years in the New York Exchange and to a low of nearly 4 years in the London Exchange.
But now signs of improvement are visible in it. A leading multinational trading firm has projected the global surplus of sugar to reach 75 lakh tonnes for the 2025-26 season. On the other hand, the US Department of Agriculture in its biennial report has projected the global
sugar production to increase by 4.7 percent to 1893.18 lakh tonnes during the 2025-26 season and its outstanding surplus stock at the end of the season is expected to increase by 7.5 percent to 411.88 lakh tonnes. This was putting a lot of pressure on the prices.