India contracts over 100,000 tonnes of sugar for export, more likely amid weakening INR
Indian sugar mills have already contracted over 100,000 tonnes for export after the government allowed 1.5 million tonnes for 2025-26. Shipments begin mid-January. A weaker rupee near 90 per dollar has improved competitiveness. Buyers include Afghanistan, Sri Lanka, Somalia, Yemen and Kenya, with FOB prices around $440–450 per tonne.
After the government on November 14 permitted Indian sugar mills to export 1.5 million tonnes (mt) of sugar during the 2025-26 season (October-September), contracts have been completed for over 100,000 tonnes so far for spot delivery by mid-January with shipments started moving now, industry sources said.
After the permission, it was feared that Indian sugar would not be economically viable to compete globally, but with rupee now breaching the psychological barrier of 90 against dollar, t more contracts will likely be signed in the next few days, an industry expert said, adding these 100,000 tonnes were contracted when dollar was about ₹88.
Major destinations showing interest for Indian sugar include Afghanistan, Sri Lanka, Somalia, Yemen, Kenya and some other countries in the Middle East and Africa, trade sources said. While exporters are divided on the contractual prices, one exporter said the contracts were mostly at $440-450/tonne (FOB) from a port on the West Coast.
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Source : The Hindu Business line
