Sugar prices expected to strengthen due to unfavourable weather in Brazil

06-May-2025 06:03 PM

Sao Paulo. In Brazil, the world’s largest producer and exporter of sugar, the crushing season for sugarcane and the production of sugar and ethanol began in April.

However, sugar mills are facing difficulties due to unfavourable weather conditions. Around 90 percent of Brazil’s sugar is produced in its central-southern region.

Last year, widespread incidents of arson in the Sao Paulo province led to the destruction of sugarcane crops across roughly 50,000 hectares. As a result, those areas will not contribute to sugarcane crushing this year.

Thailand, the second-largest sugar exporter, typically completes its crushing season from December to April. With sugar production in Thailand expected to increase slightly compared to last year, its exportable stock may also grow.

India, the second-largest sugar producer globally after Brazil, is likely to see a sharp decline of 55–60 lakh tonnes in sugar production compared to the previous season.

The Indian government has permitted sugar mills to export 10 lakh tonnes during the 2024–25 marketing season (October–September), but high domestic prices have dampened the interest of foreign buyers.

So far, less than 4 lakh tonnes have been shipped from India, and total exports for the season may only reach 7–8 lakh tonnes. However, if global sugar prices rise sharply, Indian exports may see some increase.