Improvement in Global Sugar Prices and Its Impact on India
21-Jul-2025 10:11 AM
Improvement in Global Sugar Prices and Its Impact on India
★ Continuing the upward trend from the previous week, NY sugar reached a 1.5-month high and London sugar a 1.75-month high.
★ Signs of stronger global demand are supporting sugar prices.
★ China imported 420,000 MT of sugar in June — a 1,435% increase year-on-year.
★ In the US, Coca-Cola has agreed to replace high-fructose corn syrup with cane sugar, which could boost domestic sugar consumption by 4.4% to 11.5 million MT.
★ Declining sugar production in Brazil is also supporting global prices.
★ According to Unica, sugar output in Brazil’s Center-South region fell by 14.3% YoY to 12.249 million MT as of June in the 2025/26 season.
★ Brazil’s official crop agency Conab reported that 2024/25 sugar production declined by 3.4% to 44.118 million MT due to drought and excessive heat.
★ Thailand’s 2024/25 sugar production rose by 14% to 10 million MT.
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India’s Position and Outlook
★ India's 2025/26 sugar production is projected to rise by 19% to 35 million MT due to better rainfall and increased acreage.
★ According to ISMA, India's 2024/25 production declined by 17.5% YoY to a five-year low of 26.2 million MT.
★ Rainfall in June was 9% above normal, and forecasts suggest above-normal rains in July as well.
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Potential Impact on India
★ If global prices continue to rise, India could increase exports.
★ The new sugar season in India begins in October; current production is very low.
★ With upcoming festive and industrial demand, sugar held in mill stocks may enter the market, offering additional support to domestic prices.