FX.co ★ India May Resume Sugar Exports

India is considering permitting sugar exports for the forthcoming 2025–26 season, commencing in October, as initial indicators point to a potentially abundant sugarcane harvest, according to Bloomberg News, which cites an informed source. Favorable climatic conditions, expanded sugarcane acreage, and robust monsoon rains have enhanced crop projections across key producing regions, including Maharashtra and Karnataka. While domestic sugar consumption is predicted to see a modest increase, ongoing above-average rainfall might result in a surplus. This potential policy adjustment signifies a departure from the export quota system established in the 2022–23 season, which was necessitated by adverse weather conditions and disease impacting production. A representative from the food ministry has not yet provided a comment. The National Federation of Cooperative Sugar Factories anticipates a 19% increase in sugar production for the 2025–26 period. In an effort to manage supply, it is likely that mills will redirect at least 4 million tons of sugar towards ethanol production, an increase from the current season's 3.2 million tons.