Sugar Prices Ease on Hopes of Higher Output in Africa, India, Thailand
13-Sep-2025 03:35 PM
Mumbai. The global market price of sugar has been under pressure for some time as its better production is expected in the world's two most prominent producing countries - Brazil and India.
Apart from this, production is also expected to increase in Thailand, which is the second largest exporter of sugar. The global supply and availability of sugar is expected to remain largely smooth in the marketing season of 2025-26.
The strengthening of the Brazilian currency has put additional pressure on global sugar prices as it has weakened the demand of importers.
The futures price of raw sugar for the October contract on the New York Exchange fell 0.19 percent to 15.68 cents per pound and the futures price of white sugar on the London Exchange fell 0.61 percent to $ 491.20 per tonne.
During the current week, the sugar market witnessed a lot of turmoil and its price on the New York Exchange fell to the lowest level in the last four and a quarter years. This clearly indicates the strength of the supply side in the market.
The Indian Sugar and Bio Energy Manufacturers Association (ISMA), the apex body of the sugar industry in India, maintained the initial production estimate of sugar for the 2025-26 marketing season (October-September) at a high level of 349 lakh tonnes, increasing the pressure on the global market price.
ISMA has urged the government to allow the export of 20 lakh tonnes of sugar in the 2025-26 marketing season. If the government accepts this, then the possibility of a rise in the global market price of sugar may also diminish.
ISMA says that due to good monsoon rains, there may be a huge increase in the domestic production of sugarcane and sugar this time, whereas production had decreased significantly in the 2024-25 season.
In Brazil, sugar production is lagging behind by 4.7 percent in the current marketing season as compared to last year, but now the millers have started using more quantity of sugarcane in the manufacture of sugar instead of ethanol.
During August 1-15, 55 percent of sugarcane in the Central Southern region of Brazil was used to produce sugar and 45 percent to produce ethanol.