Indian millers contract to export 6 lakh tonnes of sugar

13-Mar-2025 10:42 AM

Hesitate on New Deals

Mumbai: Indian sugar millers have so far contracted to export 6 lakh tonnes of sugar during the 2024-25 marketing season (October-September). However, further export agreements are slowing down as domestic sugar prices rise sharply due to concerns over lower production and increased summer demand.

Key Developments in Sugar Exports:

• The Indian government has allowed the export of 10 lakh tonnes of sugar for 2024-25.
• Despite global sugar prices hitting a three-year low, domestic prices are rising, making exports less attractive.
• 6 lakh tonnes have been contracted, but only 2.50 lakh tonnes have been exported so far.

Supply & Demand Outlook:

• Sugar production (2024-25): Estimated at 258-264 lakh tonnes
• Domestic demand: Expected between 280-290 lakh tonnes
• Approved export quota: 10 lakh tonnes
• Potential supply-demand imbalance in the coming months

Global vs. Indian Sugar Pricing:

• Indian low-quality white sugar is currently $20 per tonne more expensive than London Exchange futures.
• Brazil’s high-quality sugar is being offered at competitive rates, making it a preferred choice for importers.

With domestic prices firming up, millers are reluctant to commit to additional exports, which could lead to tight supply conditions in the Indian market as summer demand rises.