Dry Weather in Brazil Pushes Global Sugar Prices Up

28-Apr-2025 01:04 PM

São Paulo, — Dry and hot weather conditions are severely affecting the sugarcane crop in Brazil’s central-southern region, responsible for around 90% of the country’s sugar production.

São Paulo, the leading producer state, is facing a significant shortage of rainfall, with little chance of relief in the near future. As a result, benchmark sugar futures prices on the New York and London exchanges are showing signs of improvement.

Meanwhile, India's sugar production season is drawing to a close, with domestic output expected to be around 6 million tonnes lower than last year.

Although the Indian government has permitted the export of 1 million tonnes of sugar this year, high domestic prices are slowing down actual shipments.

Experts warn that unless global sugar prices strengthen further, India's sugar exports may end up between 600,000 and 700,000 tonnes.

Adding to supply concerns, sugar production in Thailand — the world’s second-largest sugar exporter after Brazil — is also winding down.

Last year's devastating fires in Brazil's São Paulo province destroyed around 50 tonnes of sugarcane, which is expected to impact this year's harvest as well. Although Brazil officially started its crushing season on April 1, 2025, progress remains sluggish.