According to government and industry sources, India plans to permit the export of one million metric tons of sugar this season in order to support local prices by enabling mills to export excess supplies from the second-largest producer of the sweetener in the world.

The authorization to allow mills to sell one million tons of sugar on the international market may further suppress sugar prices.

The sources, who did not want to be identified because they were not authorized to speak to the media, stated that the government is anticipated to soon issue an official order permitting the export of one million tons of sugar.

It is anticipated that this year's production will fall below consumption for the first time in eight years, so some traders are surprised by the decision to permit exports, which had been speculated about for a few weeks.

Since Maharashtra, Karnataka, and Uttar Pradesh produce more than 80% of the nation's sugar, trade houses have lowered their output projections for the current 2024–25 season due to the lower cane yields in these states.

Leading trade houses predict that production may drop from 32 million tons last year to about 27 million tons, which would be less than the annual consumption of over 29 million tons.

India, which exports sugar to Bangladesh, Indonesia, and the United Arab Emirates, was the world's second-largest exporter in the five years leading up to 2022–2023, with an average of 6.8 million tons per year. India prohibited exports during the 2023–2024 marketing year.

The authorization to export one million tons of sugar will benefit sugar mills that are struggling with low local prices, according to the Indian Sugar and Bio-energy Manufacturers Association, a producers' organization.
India's sugar prices are currently at their lowest point in one and a half years.
“Next year's production is expected to be quite high, so allowing limited exports of 1 million tons is good news for the sugar industry,” said Deepak Ballani, director general of the Indian Sugar and Bioenergy Manufacturers Association.