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India Suspends Sugar Shipments Abroad Amid Supply Concerns
(MENAFN) India has imposed a temporary halt on sugar exports for the next five months as authorities attempt to stabilize domestic prices during a period of rising global sugar costs.
According to official announcements issued late Wednesday, the restrictions will stay in place until September 30. Certain exemptions will still apply, including shipments already in progress and exports linked to government agreements aimed at food security support.
The move comes as concerns grow over declining sugar production. Reports indicate that India’s upcoming sugarcane harvest, which typically starts around October, may suffer due to below-normal monsoon rainfall associated with the El Niño weather phenomenon.
India, the world’s leading sugar producer, requires approximately 26 to 28 million tonnes of sugar annually to meet local demand. Production reached around 31.5 million tonnes during the 2023-24 season, but estimates suggest output could decline to roughly 25.8 million tonnes in 2024-25 following weaker agricultural conditions.
The country previously exported a record 11 million tonnes of sugar in 2021-22. Exports later dropped significantly to 6.3 million tonnes in 2022-23 and declined again the following year. A slight rebound was recorded in 2024-25, with exports reaching about 900,000 tonnes.
Reports noted that the downturn was largely influenced by government policy, as authorities focused on preserving domestic supplies while also diverting part of the sugar stock toward ethanol production.
Data from trade authorities showed that African countries — particularly Sudan, Libya, and Somalia — were among the main destinations for Indian sugar exports during the 2024-25 period.
Meanwhile, ongoing tensions involving Iran have added further uncertainty to the sector due to worries over fertilizer imports. The Middle East supplies nearly half of India’s fertilizer imports. Saudi Arabia remains India’s biggest supplier of diammonium phosphate, while Oman is its leading urea supplier. Additional concerns are tied to possible shortages of liquefied natural gas used in urea production, with Qatar serving as India’s largest imported LNG provider.
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