Sugar Prices Fall as India Seeks to Boost Sugar Exports

Core Insights - Sugar prices are experiencing downward pressure due to increased production forecasts and export requests from India [1][2][4] Group 1: Sugar Production and Supply - The Indian Sugar and Bio-energy Manufacturers Association has requested permission to export 2 million metric tons (MMT) of sugar for the 2025/26 season, which may impact global supply dynamics [1] - Brazil's sugar production is projected to rise, with a reported 16% year-on-year increase in sugar output in the first half of August, reaching 3,615 thousand metric tons (MT) [2] - Brazil's sugar mills are prioritizing sugar production over ethanol, leading to an increase in sugarcane crushed for sugar [3] Group 2: Global Sugar Market Outlook - The International Sugar Organization (ISO) forecasts a global sugar deficit of 231,000 MT for the 2025/26 season, marking the sixth consecutive year of deficits, although this is an improvement from a 4.88 MMT shortfall in 2024/25 [4] - Brazil's government crop forecasting agency, Conab, has reduced its sugar production estimate for Brazil in 2025/26 by 3.1% to 44.5 MMT, citing adverse weather conditions [5] - Expectations for abundant sugar supplies are leading to lower sugar prices, with projections of a 7.5 MMT global sugar surplus for the 2025/26 season, the largest in eight years [6]