India plans to uphold its one-million-ton sugar export quota for the current season, quelling fears of potential supply restrictions that had driven global prices higher last week. According to a source familiar with the matter, the world’s second-largest sugar producer will have sufficient stockpiles by the end of the season, which concludes on September 30, despite a dip in production. The country’s reserves will be more than adequate to cover domestic demand for over two months before the new crop is harvested, the source revealed, requesting anonymity due to the sensitive nature of the information.
Speculation had arisen last week that India might impose export restrictions due to reduced production estimates, which contributed to an increase in global sugar prices.
However, the source indicated that local consumption this year is expected to be lower than last season, which saw a spike in demand for beverages and sweets driven by national elections. Additionally, planting for the 2025-26 crop is progressing well in key growing states such as Maharashtra and Karnataka.
Earlier this year, India allowed mills to export up to one million tons of sugar, lifting restrictions that had been in place for over a year. Historically, the country has shipped much larger quantities of sugar abroad.
A spokesperson from India’s food and commerce ministries did not respond to requests for comment.
In a sign of sufficient domestic supply, factory-gate sugar prices for millers in major production regions, including Uttar Pradesh and Maharashtra, have been declining since March. This indicates that the local market is well-supplied, according to the Indian Sugar & Bio-energy Manufacturers Association.
Related topic:
China’s Corn Imports Hit Seven-Year Low Amid Sluggish Economy
Goldman Sachs Focuses on Private Markets Amid Growing Scrutiny
Ant Group Leverages Domestic Chips to Cut AI Training Costs by 20%
