News Capsule: West Asia Crisis to Impact India’s Sugar Exports
06-Mar-2026 01:08 PM
News Capsule: West Asia Crisis to Impact India’s Sugar Exports
★ Rising tensions in West Asia are expected to affect India’s sugar exports to Afghanistan and some Gulf countries. Earlier, shipments to these markets were averaging around 60,000–70,000 tonnes per month, and exports were projected to reach nearly 500,000 tonnes by September, which is about 20% of the total export quota.
★ Following the attack on Iran and the closure of the Strait of Hormuz, exports to Afghanistan have almost come to a halt, as India mainly routed sugar shipments to Afghanistan through Iran’s Bandar Abbas port.
★ Currently, Indian sugar is less competitive in the global market, priced about $20–$25 per tonne higher than international benchmarks. In addition, the West Asia crisis has pushed ocean freight rates sharply higher from $150–$250 per tonne to around $650–$700 per tonne, making exports even more difficult.
★ With exports slowing, pressure on domestic supplies may ease and prices are likely to remain range-bound. India’s sugar production in 2025–26 is estimated at around 29.3 million tonnes, while domestic consumption is expected to be about 28.5 million tonnes.