Sugar Prices Slump as Production Jumps in India

Group 1 - Sugar prices have dropped to two-week lows, with March NY world sugar 11 closing down 2.73% and March London ICE white sugar 5 down 2.08% [1] - The India Sugar Mill Association (ISMA) reported a significant increase in Indian sugar production for 2025-26, rising 25% year-on-year to 11.90 million metric tons (MMT) [1] - ISMA raised its 2025/26 India sugar production estimate to 31 MMT, an increase of 18.8% year-on-year, while cutting the estimate for sugar used for ethanol production to 3.4 MMT [2] Group 2 - India's food ministry announced that it would allow mills to export 1.5 MMT of sugar in the 2025/26 season to alleviate domestic supply issues [2] - Brazil's sugar production is expected to decline by 3.91% in 2026/27 to 41.8 MMT, with exports projected to fall by 11% year-on-year to 30 MMT [3] - Conab raised its Brazil 2025/26 sugar production estimate to 45 MMT, indicating a bearish outlook for sugar prices [4]