Weak Rupee Aids Sugar Export Contracts

04-Dec-2025 04:19 PM

Mumbai. After the Central Government granted permission to the domestic industry on November 14th to export 1.5 million tons of sugar for the current marketing season 2025-26 for the current marketing season, Indian exporters have begun to take advantage of this opportunity.

The exchange rate of the Indian rupee against the dollar is proving successful in securing export contracts.

It is understood that Indian exporters have already secured export contracts for over 100,000 tons of sugar.

Some shipments are now underway under this agreement for spot delivery by mid-January. Shipments are expected to begin on time.

Despite the export permission, there were concerns that sugar shipments from India would be difficult due to its low economic value.

With global market prices falling significantly and Indian prices remaining high, foreign importers were expected to be less interested in purchasing sugar.

However, the sharp decline in the Indian rupee's exchange rate has made it increasingly profitable for foreign buyers to purchase sugar from India.

The value of one US dollar has risen to over 90 rupees. This has made the price of sugar in dollar terms quite attractive.

Given this, more sugar export contracts are likely to be signed in the coming days. This deal for 1 lakh tons of sugar was struck when one dollar was equal to 88 rupees.

Major buyers of Indian sugar include Afghanistan, Sri Lanka, Somalia, Yemen, Kenya, other African countries, and some countries in the Middle East and Asia.

While exporters have differing opinions regarding the free on board export offer price of sugar, it appears to be between 440-450 dollars per ton, excluding shipping costs and insurance.