Brazil, Thailand set to gain as India halts sugar exports
India has suspended all sugar exports until September 30, 2026, due to expected production shortfalls and weak cane yields, tightening global supplies. The move lifted sugar prices, disrupted pending export contracts, and is expected to boost export opportunities for Brazil and Thailand in Asian and African markets.
Brazil and Thailand are poised to expand their footprint in global sugar markets after India imposed an immediate ban on exports, tightening international supply and lifting prices.
India, the world’s second-largest sugar producer, announced on May 13 that all sugar exports will be suspended until September 30, 2026, or until further notice. The move is aimed at keeping domestic prices under control as production is now expected to fall short of local demand, The Nation reported.
With India stepping out of the export market, buyers across Asia and Africa are likely to turn to Brazil and Thailand, creating fresh opportunities for both countries to increase shipments.
The restriction applies to both raw and white sugar. However, the government has allowed some relief for exporters, stating that shipments already in progress will be cleared under certain conditions. These include cargoes where loading had begun, vessels that had already reached Indian ports, or consignments handed over to customs before the notification.
India had earlier approved exports of 1.59 million metric tons, assuming production would exceed consumption. That estimate has since changed, as lower cane yields in key growing regions are expected to result in a second consecutive year of supply shortfall.
Uncertainty over the upcoming monsoon, with forecasts pointing to possible El Niño conditions, has further raised concerns about next season’s output.
Traders said export agreements had already been signed for about 800,000 tons, with more than 600,000 tons shipped. The sudden halt has created challenges for exporters trying to meet their remaining commitments.
Global markets reacted quickly to the development. Raw sugar prices in New York rose by over 2%, while white sugar prices in London climbed nearly 3%.
As supply tightens and prices firm up, Brazil and Thailand are expected to move swiftly to capture additional demand, strengthening their position in the global sugar trade.
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Source : ChiniMandi
