India Anticipates Surplus Sugar for Export in 2025-26
India anticipates an ample sugar supply for export in the 2025-26 season due to favorable weather conditions and increased acreage planted by farmers.
Production Projections
According to Aswani Srivastava, Joint Secretary at India's Food Ministry, India expects a "bumper sugar cane crop" next year, indicating that the country will maintain its presence in the export market.
Export Approvals
India, the world's second-largest sugar producer, granted permission to export up to 1 million tons of sugar in the current season. However, the industry requested a 2 million-ton export quota, which was not approved.
Production Challenges
Despite the increase in acreage, India's current season production is expected to fall short of expectations due to early flowering and the spread of red rot disease.
Recovery Prospects
Niraj Shirgaokar, Vice President of the Indian Sugar & Bio-energy Manufacturers Association, predicts a recovery in the 2025-26 season as a result of good rains and the planting of higher-yielding cane varieties.
International Market Impact
India's sugar exports have a significant impact on the global market. Continued shipments, after meeting domestic demand, could put downward pressure on international prices, which have already declined by 20% in the past year due to improved supply.
Ethanol Production
India's focus on increasing ethanol production may also affect sugar exports. The government plans to increase biofuel blending with gasoline from 18% to 20% in the coming fiscal year.
Stockpiles and Consumption
Sugar stockpiles stood at approximately 8 million tons at the start of the current season, and production is estimated to reach 27 million tons. Local consumption is projected to total 28 million tons.