India's Sugar Production Plummets, Export Prospects Dim

Indian sugar mills have produced 9.54 million metric tons since October, marking a 15.5% decline year-on-year due to lower cane yields in key states. This downturn, driven by adverse weather and disease, jeopardizes the potential for exports, influencing international sugar prices.

Indian mills have produced 9.54 million metric tons of sugar since the season began on October 1, reflecting a significant 15.5% decrease compared to last year, as reported by a prominent industry body on Thursday.

The reduction in output from India, the world's second-largest sugar producer, could rule out the chances of any export permits for the season concluding in September 2025, thus providing support for global sugar prices.

Key production areas like Maharashtra and Karnataka have seen notable declines in output due to poor cane yields, attributed to last year's drought and red rot disease impacts, casting doubts over export opportunities, according to industry sources.

(With inputs from agencies.)