Stories
Sugar Prices Surge as India, Thailand, and EU Face Production Risks
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CNBC TV18•19-10-2026, 12:09
Sugar Prices Surge as India, Thailand, and EU Face Production Risks
- •Sugar prices are rising globally due to production concerns in India, Thailand, and the European Union, leading to tight market supplies.
- •Oil marketing companies invited bids for 1,100 crore litres of ethanol for 2026-27, excluding sugarcane juice and B-heavy molasses to protect sugar reserves.
- •India's sugar production is estimated to drop to 27-29.5 million tonnes this season due to below-normal monsoon conditions in Maharashtra and Karnataka.
- •Indian sugar mills have commenced crushing operations 20-25 days earlier than usual to bring fresh supplies into the market and ease near-term pressures.
- •Global raw sugar prices hit four-year highs as weather-related risks impact key producers including Thailand and the EU.
Key Questions Answered
The OMCs' ethanol tender for the 2026-27 season excludes ethanol produced from sugarcane juice, sugar syrup, and B-heavy molasses.
To help contain rising sugar prices, the government has introduced an emergency import allocation of 1 lakh tonnes and maintained stock limits through November 30.
Below-normal monsoon conditions and lower crop yields in Maharashtra and Karnataka are expected to cause sugar output across the two states to decline by approximately 14% to 19%.
