India Resumes Sugar Imports After a Decade-Long Break

India is resuming sugar imports after a ten-year hiatus

The global sugar shortage forecast by international food organisations for the 2026/27 season is already influencing the trade policies of the world’s largest sugar-producing countries. After a ten-year hiatus, India is resuming sugar imports. The reason is an expected decline in production, as well as a tight balance between supply and demand. The government has authorised the import of 1 million tonnes of sugar by December 2026 to ensure the stability of the domestic market.

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According to a forecast by the rating agency Crisil Ratings, sugar production in India could fall by almost 7 per cent in the 2027 agricultural season – to approximately 29 million tonnes (compared with 31.1 million tonnes a year earlier). The main reason for the decline is expected to be a drop in sugarcane yields due to adverse weather conditions in the country’s key producing regions, reports Chinimandi.

Analysts estimate that domestic sugar consumption in India will remain roughly in line with production levels, which will limit the scope for building up additional stocks and for exports. At the same time, export shipments are already being constrained by the limited number of licences issued last season. Domestic sugar prices are expected to remain high, although imports and government measures to stabilise the market may limit further price rises.

At the same time, a decline in production and India’s return to importing could have a significant impact on the global sugar market balance.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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