India’s sugar mills are likely to export up to 2 million metric tons of sugar this season, as domestic supply improves and local prices trend lower, according to the head of a prominent industry association.
In an interview with Reuters, Deepak Ballani, director general of the Indian Sugar Mills Association stated, “The supply situation looks better than initially expected, which is why the government should allow mills to export at least a million or a couple of million tons of sugar.”
Last year, India, the world’s second-largest sugar producer after Brazil, banned sugar exports for the 2022-23 season, marking the first export ban in seven years due to a drought that impacted cane yields.
Prime Minister Narendra Modi’s government has extended the sugar export ban for a second consecutive season, as India, the world’s largest sugar consumer, faces the challenge of reduced cane production.
India’s sugar season spans from October to September.
However, prospects for the 2024-25 season are brighter. India is likely for a record sugar harvest, with farmers expanding cane cultivation due to favorable water conditions and declining prices for other crops.
“Since cane planting has been strong, next year’s production is expected to be quite robust,” Ballani noted.
He further asserted, “In anticipation of substantially higher production, sugar prices have dropped, and the permission to export at least 1-2 million tons will help mills struggling with lower prices.”
Sugar prices in India have fallen to their lowest levels in 18 months due to an abundant supply, making it difficult for mills to meet farmers’ cane price demands.
Ballani stated that sugar prices had fallen well below the mills’ production cost of 41,000 rupees ($482.90) per ton.
“Even if the government allows us to export 2 million tons of sugar, we will still have a surplus of 5.6 million tons at the start of the next season on 1 October 2025,” he added.
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