India may stop exporting sugar due to low production levels: a cyclone in the global industry.
agricultural products
Sugar

India may stop exporting sugar due to low production levels: a cyclone in the global industry.

Cona Haki warned that India may not export sugar in 2023-24 due to low production levels. This is a result of rainfall deficit, which will lead to price increases and inflation growth in global markets. September rains may provide some relief, but the harvest will decrease due to lack of rain in August.

8 July 2025 8 July 2025

According to Kona Haki, head of research at ED&F Man Commodities, India may not plan to export sugar in the 2023-24 season due to decreased production compared to the previous year, Nasdaq reports.

These statements followed reports from sources in the government, who spread information through Reuters about a possible ban on sugar exports from India in the coming season starting in October this year due to lack of rainfall affecting the sugarcane crop.

The potential absence of India in the global market could lead to an increase in indicative prices in New York and London, which are already at high levels, raising concerns about possible further inflation growth in global food markets.

In the current season until September 30, India allowed exports of only 6.1 million tons of sugar, almost half of the record 11.1 million tons sold in the previous period.

Considering the unusually dry August, normal rainfall is expected in September. While this will be favorable for the sugarcane crop, the yield will still be lower due to the rain deficit in August, as reported on the sugar.ru website.

Uneven rainfall will affect sugar production in the 2023/24 season and reduce sowing volumes for the next 2024/25 season, according to an industry representative who requested anonymity, confirmed last month.

In addition, Haki expressed concerns regarding sugar production in India in the 2024-25 season.

 

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