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Informist, Friday, Dec. 12, 2025

 

--Trade body: Indian exporters contracted 100,000 tn sugar with global cos 

--Trade body: Mills sold 160,000 tn sugar so far to domestic cos for exports 
 

By Afra Abubacker

 

NEW DELHI – A month after the government announced sugar exports, India has contracted about 100,000 tonnes of sugar for overseas shipment so far in the 2025-26 season (Oct-Sep), accounting for roughly 7% of the 1.5 million tonnes export quota, according to estimates by the All India Sugar Trade Association. 

 

Mills have sold around 160,000 tonnes of sugar to domestic exporters so far, while exporters have inked overseas contracts for about 100,000 tonnes, Praful Vithalani, chairman of the trade body, told Informist. "This is a small quantity, but it is better than the market expectation," he said. 

 

Actual sugar shipments are estimated to be around 40,000 tonnes, Rahil Shaikh, founder & managing director of MEIR Commodities, said. "Export parity exists only in very limited markets at current prices," he said. With ex-mill prices around INR 3,770 per 100 kilogram, Indian sugar is competitive only in a handful of markets, such as Sri Lanka, Afghanistan, and parts of Africa, Shaikh said.  

 

"Now the pace will slow down, because we have already sold the cheaper ones. The world market has to go up, or else I think we will exactly replicate last year's sugar exports at these prices," Shaikh added. In 2024-25, the government allowed exports of 1.0 million tonnes, of which mills shipped some 800,000 tonnes. 

 

In November, the government announced an export quota of 1.5 million tonnes for the 2025-26 season, which opened up additional markets for Indian sugar mills amid expectations of surplus sugar production. In Oct-Nov, India's sugar production rose 43% on year to 4.11 million tonnes, driven by higher sugarcane crushing in key producing states, especially Maharashtra, according to the Indian Sugar & Bio-energy Manufacturers Association. 

 

For the entire 2025-26 season ending September, ISMA has projected India's sugar output to rise over 18% on year to 30.9 million tonnes from 26.1 million tonnes last year. The country needs 28.5 million tonnes for domestic consumption. 

 

With concerns that surplus supplies will weigh on domestic sugar prices, ISMA has urged the government to grant an additional export quota. "When the season progresses, the government will be assured our surplus production is as mentioned (by ISMA)," ISMA Director General Deepak Ballani told Informist earlier. "Perhaps, after we complete 1.5 (million tonnes sugar exports), we can get some more," he added.

 

However, market participants are sceptical of India's export parity at current prices. The most active March contract for white sugar on the Intercontinental Exchange is around $425 per tonne, and traders say exports will improve once prices reach $450- $460 per tonne, assuming a weak rupee at INR 90 per dollar. End

 

US$1 = INR 90.43

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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