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India Faces Sugar Export Halt Next Year Amid Crop Worries: ISMA
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CNBC TV18•28-09-2026, 15:04
India Faces Sugar Export Halt Next Year Amid Crop Worries: ISMA
- •India may not export sugar next year due to concerns over the 2027 crop and potential tighter domestic supplies, according to Deepak Ballani, Director General of ISMA.
- •Below-normal rainfall in key sugar-producing states like Maharashtra and Karnataka is raising fears of drought-like conditions.
- •ISMA is conducting an on-ground assessment, with a clearer picture of next year's production expected by the second or third week of October.
- •India may need to import 1 million tonne of raw sugar, with 800,000 tonne already approved, but imports depend on international prices becoming more viable.
- •For the immediate festive season, ISMA expects a government sugar release quota of 23-25 LMT, with sufficient stocks to meet demand and maintain price stability.
Key Questions Answered
ISMA expects no sugar exports next year because below-normal monsoon rainfall in key sugar-producing states like Maharashtra and Karnataka has raised concerns over tightening domestic supplies and the 2027 crop.
The government has allowed 1 million tonne of raw sugar imports to maintain adequate domestic stocks, with around 800,000 tonne already approved by the Directorate General of Foreign Trade.
ISMA expects that any ethanol diversion will come mainly from C-heavy molasses rather than sugarcane juice or B-heavy molasses, allowing ethanol production without sacrificing sugar output during uncertain crop conditions.
