This week’s episode offers a comprehensive view of the shifting dynamics in the global sugar market.

• In Brazil, adverse weather conditions have prompted a downward revision of sugar production forecasts by 3.1%, now expected at 44.5 million metric tons for the 2025-2026 season. In the Center-South region alone, output through July dropped by 7.8% year on year, totaling 19.3 million metric tons. In response, sugar mills are increasingly prioritizing sugar over ethanol production to maximize revenue amid lower cane yields.
• Conversely, India is experiencing a robust upswing in sugar production, projected to rise by 25% to 35.3 million metric tons. Favorable monsoon conditions and expanded cane acreage are key contributors. This growth has encouraged India to pursue export approvals for up to 2 million metric tons, a move that could have notable implications for global sugar pricing as the government evaluates broader export allowances.
• Thailand continues its recovery in the sugar sector, with production expected to increase by 2% to 10.3 million metric tons. This follows a 14% surge in the previous season. Thai sugar mills are strengthening their global export presence, potentially contributing to a softening of international sugar prices due to increased supply.
• In Pakistan, domestic sugar shortages have led the government to seek substantial imports to stabilize prices. The Trading Corporation of Pakistan is currently soliciting bids for 100,000 metric tons of refined sugar as part of a broader effort to control surging retail costs.
• Globally, the sugar market is sending mixed signals. While Kzarnikov forecasts a global surplus of 7.5 million metric tons, factors like reduced output in Brazil and significant import needs from countries such as Pakistan and China are driving short-term price increases. Overall, global sugar dynamics remain highly sensitive to regional production fluctuations and the import strategies of major consumer nations.