India Likely To Miss Sugar Export Target, May Ship Around 775,000 Tonnes

(MENAFN- KNN India) New Delhi, Sep 19 (KNN) India's sugar mills are expected to fall short of the 1 million tonne export quota set for the ongoing season, with shipments projected at around 775,000 tonnes, according to government and trade officials.

Earlier this year, the government permitted sugar exports of up to 1 million tonnes by September 30, 2025 to help reduce surplus stocks and support domestic sugar prices, which had dropped to their lowest levels in about 18 months.

While several export deals were signed early in the season, overseas sales have slowed significantly in recent months. Increased supply from Brazil and falling global sugar prices - now at their weakest in over four years - have reduced the competitiveness of Indian sugar in international markets.

So far, Indian mills have contracted about 750,000 tonnes and physically shipped nearly 720,000 tonnes. Even under optimistic assumptions, only an additional 25,000 tonnes are expected to be contracted before the export window closes, bringing total shipments to approximately 775,000 tonnes.

With the quota unlikely to be fully met, industry officials expect millers to seek permission from the government to export the remaining 200,000-plus tonnes in the next season, which begins on October 1.

The main reason behind the shortfall is that Brazilian sugar is currently over USD 25 cheaper per tonne compared to Indian sugar, while rising domestic prices have made Indian exports less attractive to global buyers.

However, an improved monsoon this year is expected to boost sugarcane yields, which could improve sugar output and export prospects in the upcoming season.

(KNN Bureau)

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