India's Sugar Export Slowdown Amidst Rising Domestic Demand

India, the world’s second-largest sugar producer, has seen a slowdown in exports, a trend that could affect global sugar prices. Currently, global rates are hovering at their lowest levels in three years.

On the other hand, domestic sugar prices are rising due to lower output and strong domestic demand. The domestic demand for sugar typically rises between mid-March and mid-June as more cold drinks and ice cream are consumed during the summer months.

The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) revised its gross sugar production estimates to 264 lakh tonnes for the 2024–25 season from 272 lakh tonnes, the earlier estimate.

Meanwhile, as per the revised estimate, sugar production is expected to fall by 19% to 258 lakh tonnes in the 2024-25 season ending September, according to the All-India Sugar Trade Associations.

However, based on the revised estimates of ISMA, the total sugar availability is estimated at 344 lakh tonnes, exceeding domestic consumption of 280 lakh tonnes. Exports are projected at 10 lakh tonnes, with closing stocks of 54 lakh tonnes.

Earlier In January, India allowed the export of 10 lakh metric tonnes of sugar from the 2024-25 season, ending in September, after a two-year ban aimed at ensuring domestic supply and affordability, with the goal of supporting farmers and the sugar sector.

Indian sugar mills have signed contracts to export nearly 6 lakh metric tonnes of sugar in the 2024-25 season ending September.

A total of 81,307 metric tonnes of sugar have been exported in the current sugar season, according to data from the All-India Sugar Trade Association.

The total position of actual sugar dispatches from sugar mills to ports during the current sugar season from October 2024 till March 11, 2025, amounted to 1,50,834 metric tonnes, according to the All India Sugar Trade Association.