Global Sugar Prices Rise Following India's Approval of Duty-Free Imports

05-Sep-2026 03:21 PM

Mumbai. It is a common pattern that when India begins exporting sugar, global prices drop, and when imports are permitted, prices rise. A similar trend is being observed now. Global prices began to climb immediately after the Central Government authorized millers and refiners to import 1 million tonnes of raw sugar. However, other factors are also contributing to this surge in sugar prices.

Concerns regarding a decline in sugar production are mounting due to adverse weather conditions in Brazil, India, Thailand, the European Union, and Central American nations. Brazil and Thailand are the world's two largest sugar exporters; reduced production in these regions could lead to a drop in exportable stocks. Sugar exports from India have already ceased, and there is no likelihood of them being permitted in the near future.

According to a report by the Food and Agriculture Organization (FAO), global sugar prices rose by approximately 72 percent in August 2026 compared to July, and this upward trend is expected to persist. Sugar production in the European Union is likely to decline as the sugar beet crop has been affected by severe heatwaves. The El Niño weather phenomenon is damaging sugarcane crops in major Asian sugar-producing nations. Although sugar production in China is projected to increase slightly, this will have little impact on the global market since China does not export sugar; however, higher domestic production could reduce its need for imports. As for India, uncertainty regarding sugarcane and sugar production persists.