Business
Sugar Shipments Likely to Miss Target Amid Poor Global Price Parity
Shipments may reach only 7.5–8 lakh tonnes in 2025–26 season despite higher export allowance
India, the world’s second-largest sugar producer, is expected to export only around 7.5 to 8 lakh tonnes of sugar in the 2025–26 marketing season (October–September), significantly below the permitted quota, due to unfavourable global price parity.
According to a senior government official, the lack of competitive international prices has discouraged mills from undertaking exports. “The full season physical shipments would likely land around 7.5–8 lakh tonnes. There is no parity in global prices for exports to be undertaken at present,” the official said.
The Ministry of Consumer Affairs, Food and Public Distribution had initially allowed sugar exports of 1.5 million tonnes for the current season and later opened an additional 5 lakh tonnes quota. However, approvals have been limited, with only 87,587 tonnes cleared under the additional allocation so far.
India regulates sugar exports through a quota system, distributing export limits proportionally among sugar mills to maintain domestic supply stability and control prices.
The anticipated shortfall highlights the impact of global market dynamics on India’s export potential, even as domestic production remains strong.