CropGPT - Sugar - Week 17

CropGPT - Sugar

Global Sugar Market Weekly Summary

For the Week of April 27, 2025

Welcome to the weekly summary of the global sugar market.
For more detailed reporting and analysis, visit the CropGPT website.

Key Market Updates:

India – Uttar Pradesh’s Push for Sugar Sector Growth

• The Uttar Pradesh government, under Chief Minister Yogi Adityanath, aims to elevate the state's economy to a trillion-dollar scale, with a strong emphasis on the sugar industry.
• Over 16,000 centers were inspected this season, leading to punitive actions for procurement irregularities to protect sugarcane farmers.
• Plans are underway to expand sugarcane and jaggery production, targeting an industry value of ₹1.62 lakh crore within three years.

Brazil – Mixed Sugar Production Outlook

• Brazil’s 2025 sugar production is forecasted to grow 2.3% to 44.7 million metric tons, supported by expanded crystallization capacities and favorable milling conditions.
• However, adverse weather in São Paulo could cause a 3.4% production decline, dragging production to 44.1 million metric tons.
• Brazil's dominant position continues to exert downward pressure on global sugar prices.

Thailand – Export Crisis Due to Chinese Ban

• Thailand's sugar sector faces financial hardship after China banned sugar syrup imports citing sanitation concerns.
• Despite inspections, the ban remains unresolved, resulting in severe operational disruptions for Thai exporters.

Egypt – Sugar Self-Sufficiency Milestone

• Egypt achieved self-sufficiency in sugar production, exceeding 3 million metric tons in 2025, driven by increased sugar beet cultivation.
• The government plans to introduce a value-added tax (VAT) on sugar in fiscal year 2025–26 to sustain production and bolster revenues.

Philippines – Stable but Constrained Outlook

• Sugar output is expected to stabilize at 1.85 million metric tons in 2026.
• Despite lower mill site prices anticipated in 2025, steady domestic demand, especially from industrial users, supports continued cultivation.

Russia (Krasnodar Region) – Harvest Challenges and Recovery Efforts

• Sugar beet harvests fell 24% in 2024 to 7.3 million tons.
• However, a 12% increase in cultivation area for 2025 signals efforts toward production recovery, backed by governmental support.

Global Market Trends:

• Government policies, climate impacts, and trade barriers continue to heavily influence sugar production and pricing worldwide.
• While Brazil and Egypt project growth, Thailand faces major export challenges that could tighten regional supplies.
• Analysts remain vigilant as global demand and price trajectories are expected to shift based on upcoming seasonal and geopolitical developments.