India to Allow Export of 1 Million Metric Tonnes of Sugar Amid Surplus Stocks and Falling Prices

The Indian government and industry sources have stated that the country is planning to permit the export of one million metric tons of sugar during the current season.

This move is intended to assist sugar mills in exporting surplus stockpiles from the world’s second-largest sweetener producer, which will, in turn, help support local prices.

Granting permission for mills to sell one million tonnes of sugar globally may further reduce sugar prices worldwide. SBc1 and LSUc1, respectively.

According to individuals who stated that they did not desire to be identified because they were not authorized to speak to the media, it is anticipated that the government will soon issue an official order permitting the export of one million tons of sugar.

A segment of traders was surprised by the decision to allow exports, which had been speculated about for the past few weeks. This is because this year’s production is anticipated to dip below consumption for the first time in eight years.

As a result of decreased cane yields in Maharashtra, Karnataka, and Uttar Pradesh, tradehouses have lowered their output predictions for the 2024-25 season. These three states account for over 80 per cent of the nation’s total sugar production.

Leading trade houses suggest that production may drop to around 27 million tonnes, down from 32 million tonnes last year, and below the annual demand exceeding 29 million tonnes.

In the five years preceding 2022-23, India ranked as the world’s second-largest sugar exporter, averaging 6.8 million tonnes annually. Countries that import sugar from India include Indonesia, Bangladesh, and the United Arab Emirates.

The Role of India’s Top Sugar-Producing States in the Current Season

During the 2023–24 marketing year, India did not let any exports occur.

The Indian Sugar and Bio-energy Manufacturers Association, a body representing producers, stated that the authorization to export one million tonnes of sugar will benefit sugar mills that are struggling due to low pricing in the local market.

Sugar prices in India are currently at their lowest point in the last 18 months.

According to Deepak Ballani, director general of the Indian Sugar and Bio-energy Manufacturers Association, “The sugar industry is in a position to benefit from the granting of limited exports of one million tonnes because it is anticipated that the production for the following year will be quite robust.”