Sugar Exports Likely to Be Affected Due to Crisis in West Asia

09-Mar-2026 01:54 PM

Mumbai: During the current 2025–26 marketing season (October–September), India’s sugar exports—especially to Afghanistan and Gulf countries—are likely to be significantly affected. The ongoing Iran–Israel war in West Asia has created severe chaos and uncertainty in the region. In addition, the export offer price of Indian sugar is currently uncompetitive, which has weakened demand. If export performance remains weak, domestic supply and availability of sugar may improve, reducing the likelihood of a price rise.

During the current marketing season, domestic sugar production is expected to be considerably lower than earlier estimates. Significant cuts are being made to the production forecast. In such a situation, if the country still manages to export around 2 million tonnes of sugar as per the fixed quota, the demand–supply balance in the domestic market could become complicated.

On average, India exports around 60,000–70,000 tonnes of sugar per month to Afghanistan and West Asia. Earlier, total exports to these regions were expected to reach about 500,000 tonnes by September 2026, but this target may now be difficult to achieve. Similarly, imports of relatively expensive Indian sugar by other Asian countries and African nations are also likely to decline.