International and domestic sugar prices are expected to remain firm in SY2027, supported by tightening global and domestic sugar supplies. The recent allowance of 1.0 million MT duty-free sugar imports is likely to moderate the upward pressure on domestic sugar prices in the near term.

• Sugar demand and closing stock – Gross sugar production in SY2026* is projected to increase by 3% to 30.6 million MT (previous year [PY]: 29.6 million MT). Net sugar production, after an estimated diversion of 3.1 million MT towards ethanol production, is likely to remain at 27.5 million MT.
• World sugar balance and international prices – Global production for SY2026-SY2027 is estimated to remain at 185 million MT (0.6% lower than last year), while consumption is likely to remain higher at 179.9 million MT.