India has no plans to restrict sugar exports despite output shortfall, government sources say
India is not considering restrictions on sugar exports despite production likely matching domestic consumption. Authorities believe existing stocks are sufficient, while weaker demand from restaurants and bulk buyers amid Middle East-linked disruptions has helped stabilize domestic sugar prices.
New Delhi: India is not considering any curbs on sugar exports at this stage, even as production for the current season is expected to fall short of domestic consumption for the second year running, two government sources said on Wednesday, Reuters reported.
India, the world’s largest sugar exporter after Brazil, had earlier permitted mills to ship out 1.59 million metric tons in the current season, based on expectations that output would comfortably exceed demand. However, production for the season ending September 2026 is now unlikely to surpass 28 million tons, broadly in line with estimated annual consumption. The country entered the 2025-26 season with carryover stocks of approximately 5 million tons.
Despite the tighter supply outlook, the government believes stocks remain adequate and sees no cause to limit exports. “We have reviewed the situation closely and taken into account the latest production estimates, and concluded there is no need to restrict sugar exports at this stage,” one of the sources said, declining to be identified in line with official protocol. A government spokesperson did not respond to a request for comment.
Of the 1.59 million tons cleared for export, around 530,000 to 540,000 tons have already been shipped and more than 800,000 tons contracted. However, the pace of fresh deal-making has slowed in recent weeks, weighed down by firmer domestic prices and logistical disruptions linked to the Iran conflict.
Speculation in the market had mounted that India might pull back on exports, given that cane yields have weakened in key growing regions and forecasts of El Nino weather conditions have raised the risk that next season’s output falls short of initial estimates.
On the demand side, sugar consumption in India, the world’s largest consumer of the sweetener, has begun to ease in recent months. Government sources attributed part of this softening to cooking gas shortages stemming from the Middle East conflict, which have reduced demand from eateries and restaurants. Purchases from bulk buyers such as ice cream and soft drink manufacturers have also declined, which the sources said has helped offset a portion of the production shortfall and contributed to stable domestic prices.
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Source : ChiniMandi
