India's Sugar Export Dilemma: Unfavorable Price Parity Challenges

India anticipates exporting only 7.5-8 lakh tonnes of sugar in the 2025-26 marketing year due to unfavorable global price parity. Despite being the second-largest sugar producer, exports are limited by government-controlled quotas. Domestic demand stagnation and surplus reduction further complicate export potentials.

India, the world's second-largest sugar producer, faces a significant drop in sugar exports this 2025-26 marketing season due to unfavorable global price parity, a senior government official reported.

Despite initially allowing 1.5 million tonnes of exports and opening an extra 500,000-tonne pool, only 87,587 tonnes received approval for export. Current estimates predict the season will conclude with exports reaching around 7.5-8 lakh tonnes.

Officials attribute the diminished export prospects to stagnating domestic consumption and reduced surplus availability, which complicate the country's ability to meet its full-season export quota.