India to Sweeten Global Markets with New Sugar Export Plans

India is planning to export 1.5 million metric tons of sugar in the new season due to a surplus from reduced sugar diversion for ethanol production. This could affect global sugar prices, providing relief to domestic producers and mills. The final order is expected soon.

India plans to export 1.5 million metric tons of sugar in the upcoming season, leveraging surplus availability due to a decrease in sugar diversion for ethanol production. This move is poised to impact global sugar markets, possibly exerting downward pressure on benchmark New York and London futures prices.

The expected boost in exports aims to alleviate domestic sugar stockpiles and stabilize local sugar prices, much to the benefit of producers like Balrampur Chini Mills, EID Parry, Dalmia Bharat, and Shree Renuka Sugars, whose stocks surged by up to 5% in early Monday trade.

The government anticipates finalizing the export order soon, with the Ministry of Consumer Affairs yet to comment. Meanwhile, India's net sugar output for the 2025/26 season is projected to rise due to decreased ethanol diversion, despite a challenging export landscape exacerbated by local price premiums.

(With inputs from agencies.)