The Indian government has approved an additional 500,000 mt of sugar exports for marketing year 2025-26 (October-September), increasing the total export allocation to 2 million mt, according to an official press release late Feb. 13.

The additional quota will be distributed on a pro-rata basis to mills that confirm their willingness to export, according to the announcement.

Exporting mills must ship at least 70% of their allocated volumes by June 30, 2026, and allocations cannot be transferred between mills, the government said.

Earlier, authorities had permitted 1.5 million mt of sugar exports for the current season, of which about 197,000 mt had been shipped as of Jan. 31, with a further 272,000 mt contracted, according to the press release.

Export economics may limit flows

The move is unlikely to materially affect regional trade flows, amid unfavorable export economics and subdued global prices, multiple Asia-based traders and producers told Platts, part of S&P Global Energy, on Feb. 16.

Indian domestic sugar prices were heard at Rupees 36,500-37,500/mt ex-mill in key producing regions such as Maharashtra and Karnataka on Feb. 16, equivalent to around $450/mt on an FOB basis.

Indian sugar exports were heard priced more than $50/mt above the ICE London No. 5 May futures contract, which settled at $397.10/mt on Feb. 13, a five-year low.

“The announcement came too late in the season,” a Singapore-based trader said, adding that key importing countries have already secured cargoes from alternative origins such as Thailand and Brazil.

An Asia-based producer said the export uptake may remain limited, adding, “Even the original 1.5 million-mt quota is unlikely to be fully exercised, especially against the backdrop of low London white sugar futures.”

Domestic sugar prices have strengthened in recent weeks amid lower production expectations, with output forecast at around 29.5 million mt after accounting for cane diversion toward ethanol production, the producer added.

India exported 3.7 million mt of sugar in 2024, well below its peak of 12.1 million mt in 2022, according to data from S&P Global Market Intelligence’s Global Trade Atlas.
Key destination markets for India’s sugar exports include Indonesia, Bangladesh, Sri Lanka, Saudi Arabia and the UAE, as well as East African countries such as Somalia, Djibouti and Sudan, according to customs data.
Source: Platts