Indian sugar mills hurry to export deals due to record low rupee and rising global prices

Five dealers said that Indian sugar mills are now exporting again, with 100,000 metric tons in one week, after the rupee fell to a new record low, and the global price rally restored the economics for overseas sales.

Shipping from the world's second largest sugar producer will allow Asian and African consumers to get sugar at lower rates, despite rising freight costs and global sugar prices that are near their highest levels in five months.

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After weeks of little activity, export deals are finally starting to pick up. Around 100,000 tons of exports have been signed over the last week.

Brazil, the world's largest sugarcane producer, has been expected to divert more of its production towards ethanol due to the rising crude oil prices caused by the Middle East conflict.

Dealers said that Indian sugar was being sold at $450 per ton, free-onboard basis. Countries such as Sri Lanka, Djibouti and Tanzania, along with Somalia and Somalia, have already booked shipments in April and May.

Mills has so far contracted for 550,000 tons of exports in the current season, which ends in September.

Rahil Shaikh of Mumbai's MEIR Commodities India, the managing director, stated that the total sugar exports for this season could reach around 1.5 million tonnes, due to the increased demand from Afghanistan and other Middle Eastern countries, such as Kazakhstan and Uzbekistan.

India increased its sugar export quota in February to?2 millions tons, an increase of 500,000 tons over the 1.5 million tonnes approved previously. Mills only applied for 87,587 tonnes of the additional allocation.

A global trader in New Delhi said that there is a demand for Indian sugar from overseas buyers. However, logistical bottlenecks and rising freight costs are hampering exports.

He said that Asian buyers will likely find Indian sugar appealing, since freight costs to 'South Asia' are lower than those to Brazil.

He added that "with the rupee falling, mills get better prices exporting than by selling locally."

The Indian rupee is down 4.5% in 2026, to a new record low. Meanwhile, the Brazilian real is up 3%. (Reporting by Rajendra Jadhav; Editing by Alexandra Hudson)

(source: Reuters)