ARTICLE 2 #Sugar Price

After grain-based ethanol, the latest worry for India’s sugar industry is the continuous dip in the country’s sugar consumption. With the Central government implementing the Eat Right Campaign to reduce sugar and oil consumption, the industry is concerned that this will have a long-term impact on its economics. Dilip Patil, co-chairperson of the Sugar Bioenergy Forum of the Indian Federation of Green Energy, said the domestic consumption of sugar for the 2024-25 season (October to September) was projected to fall to 275 lakh tonnes.

March NY world sugar #11 (SBH26) on Wednesday closed down -0.47 (-2.83%), and December London ICE white sugar #5 (SWZ25) closed down -15.50 (-3.31%).Sugar prices sold off sharply on Wednesday, with London sugar posting a 1-week low. The outlook for higher sugar production in Thailand is undercutting sugar prices after the Thai Sugar Miller Corp on Wednesday projected that Thailand's 2025/26 sugar crop will increase by +5% y/y to 10.5 MMT. Thailand is the world's third-largest sugar producer and the second-largest exporter of sugar.

Sugar prices settled sharply higher on Thursday due to concerns over lower sugarcane yields in Brazil. Unica reported Thursday that Brazil's Center South sugarcane crush in the first half of September was up +6.9% y/y to 46 MMT. However, the sugar content in the cane declined, signaling lower sugar production as the sugar content in crushed cane dropped to 154.58 kilogram per ton (kg/ton) versus 160.07 kg/ton a year earlier.

March NY world sugar #11 (SBH26) on Friday closed up +0.07 (+0.431%), and December London ICE white sugar #5 (SWZ25) closed down -1.20 (-0.26%). Sugar prices settled mixed on Friday.

March NY world sugar #11 (SBH26) on Friday closed up +0.07 (+0.431%), and December London ICE white sugar #5 (SWZ25) closed down -1.20 (-0.26%). Sugar prices settled mixed on Friday. Sugar has carryover support from Thursday, when Unica reported that the sugar content in Brazil's Center-South sugarcane crush declined, signaling lower sugar production. The sugar content in crushed cane in the first half of September in Brazil dropped to 154.58 kilogram per ton (kg/ton) versus 160.07 kg/ton a year earlier.

Sugar production in 2025–26 is projected to rise 15–18%, reaching around 35 million tonnes. This recovery follows weather-related declines in previous years. Key sugar-producing states like Maharashtra and Uttar Pradesh are expected to have strong cane availability due to good monsoon.

A major shift is coming to how the UAE taxes sweetened beverages. Beginning 1 January 2026, the country will move from a flat excise tax system to a tiered, sugar‑content‑based model for drinks.