Decline in Sugar Prices Due to Surplus Supply from Brazil

16-Mar-2026 12:08 PM

New York. The global market for sugar is witnessing a softening trend in prices due to a surplus supply originating from the Latin American nation of Brazil.

The price of raw sugar has declined from $445 per ton for the February 2025 contract to $313 per ton for February 2026, while the futures price for white sugar has fallen from $532 per ton to $408 per ton.

Brazil is the world's largest producer and exporter of sugar. Millers in the country currently hold a massive surplus stock, which they are attempting to sell at lower prices.

A new marketing season for sugarcane crushing and sugar production is set to formally commence there next month (April), which will lead to a continuous increase in the supply and availability of sugar.

Although there is likely to be a greater emphasis on ethanol production this time around, sugar production is still expected to remain substantial.

The decline in global market prices is creating difficulties for India in exporting its sugar. Sugar exports are also being adversely affected by the crisis in West Asia.