Speculation of ban on sugar export in India leads to rise in global market prices

27-Mar-2025 01:17 PM

📈 Speculation of Sugar Export Ban in India Sparks Global Price Surge

📍 New York – Speculation that the Indian government might revoke the export quota of 10 lakh tonnes of sugar has triggered a rise in global sugar prices. Although no official decision has been made, the uncertainty has fueled market reactions.

📊 Global Sugar Market Reaction

📌 New York Exchange
🔹 Raw sugar futures rose 1.6% last week and surged over 5% this month.
🔹 Latest raw sugar futures price: 19.51 cents per pound (+1.3%).

📌 London Exchange
🔹 White sugar futures increased by 0.5%.

🚫 Is There Really a Ban?

❌ No official announcement or indication from the Indian government to halt sugar exports.
✅ 10 lakh tonnes of sugar export quota remains valid until 30 September 2025.
✅ Adequate domestic stock expected despite lower production.

📉 Domestic Sugar Trends

📌 Mill delivery prices in Maharashtra & Uttar Pradesh have softened since March.
📌 Domestic consumption forecast: 280 lakh tonnes for 2024-25 (ISMA estimate).
📌 Sugarcane sowing for 2025-26 is progressing well in Maharashtra & Karnataka.

🔮 Market Outlook

🌎 Global traders remain cautious over potential export restrictions.
🇮🇳 Indian supply remains steady, reducing chances of an export ban.
📈 Prices may fluctuate based on government policies & production updates.