Indian sugar export deals are beginning to pick up momentum as declining global prices and a weaker rupee improve the competitiveness of shipments from the world’s second-largest sugar producer, trade and industry sources said.
After weeks of subdued activity, international buyers from South and Southeast Asia, Africa , and West Asia have shown renewed interest in Indian sugar, encouraged by lower offer prices and favourable currency movements. Exporters said the rupee’s depreciation against the US dollar has helped narrow the gap between Indian sugar and supplies from Brazil and Thailand.
Market participants noted that white sugar (ICUMSA 45) and raw sugar are both seeing increased enquiries, particularly for prompt and near-term shipments. Some deals have reportedly been concluded at prices that were previously unviable for Indian sellers due to higher domestic costs.
“Lower international prices, combined with the rupee’s weakness, have made Indian sugar more attractive,” an exporter said, adding that buyers who had earlier deferred purchases are now returning to the market.
However, the pace of exports remains measured, as the industry continues to closely watch government policy on export permissions and domestic supply conditions. India had earlier adopted a cautious stance on sugar exports to ensure adequate availability for local consumption and ethanol blending requirements.
Analysts said sustained export momentum will depend on clarity over export quotas, freight availability, and the trajectory of global prices. Any further softening in prices or continued currency weakness could help Indian exporters secure additional contracts in the coming weeks.
India’s sugar exports are a key outlet for surplus production, and stronger overseas sales could help mills improve cash flows ahead of the next crushing season, industry officials said.