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NEW DELHI - India has no plans to curb sugar exports for now, despite lower output, as stable prices suggest weaker demand has offset some of the production shortfall, two government sources said on Wednesday.
India, the world's biggest sugar exporter after Brazil, allowed mills to export 1.59 million metric tons, betting output would exceed domestic demand. But production is now expected to lag consumption for a second consecutive year as cane yields weaken in major growing regions.
Forecasts that El Nino weather conditions could disrupt this year's monsoon have also raised the risk that next season's output falls below initial estimates.
Those factors fuelled market speculation that India may rein in sugar exports.
However, the government believes supplies remain comfortable and sees no need to restrict shipments, the sources said.
"We have reviewed the situation closely and taken into account the latest production estimates, and concluded there is no need to restrict sugar exports at this stage," one said.
The government is committed to ensuring stable supplies and prices, the sources said, declining to be named in line with official rules.
A government spokesperson did not immediately respond to a request for comment.
Of the 1.59 million tons cleared for export, about 530,000-540,000 tons have been shipped and more than 800,000 tons contracted. However, fresh deals have slowed in recent weeks amid firmer local prices and logistical disruptions linked to the Iran conflict.
India's sugar output in the current season to September 2026 is unlikely to exceed 28 million tons, roughly in line with expected annual demand.
The country started the 2025-26 sugar season with carryover stocks of about 5 million tons.
Sugar consumption in India, the world's biggest consumer, has begun to soften in recent months as the Middle East conflict has worsened cooking gas shortages, crimping demand from eateries and restaurants. Demand from bulk buyers such as ice cream and soft drink makers has also weakened.
