CropGPT - Sugar - Week 25

CropGPT - Sugar

Episode Summary: Global Sugar Market Weekly – June 22, 2025

• This episode offers a concise overview of key developments in the global sugar market as of June 22, 2025, highlighting production trends, policy interventions, and trade dynamics across major producing regions.
• Mozambique recorded a substantial 50 percent increase in sugar exports in 2024, rising to 36 million dollars from 24 million the previous year. This recovery follows the rebound in sugar production after severe cyclone-related disruptions. Despite ongoing climate risks such as frequent flooding and storm events, particularly in Sofala Province, investments are strengthening the sector. Notably, a 500 million rand infusion by Tongaat Hulett into the Mafambisse and Xinavane mills is expected to boost capacity and resilience.
• In Punjab, India, a sugarcane payment crisis is unfolding. Farmers are owed approximately INR 200 crore for cane supplied in early 2025. Critics, including opposition leader Partap Singh Bajwa, accuse the government of prioritizing financial assistance to private mill owners over cooperative sectors and smallholder payments, exacerbating the financial strain on producers.
• In the United States, overall sugar supply is projected to decline to 13.77 million short tons raw value, driven by reduced beet sugar output. While beginning stocks have risen, weather-related fluctuations and yield variability, especially in Florida, are putting downward pressure on production. Louisiana remains stable.
• Mexico anticipates steady sugar production for the 2025–2026 cycle at approximately 5.1 million metric tons, with a slight dip in exports. However, shipments to the United States are expected to remain stable, sustaining a delicate trade balance in North America.
• Malaysia is considering protective tariffs on Thai sugar imports. Industry leaders from MSM Malaysia Holdings and CSR argue that current import levels represent unfair competition and threaten domestic producers, despite sufficient local production to meet demand.
• Finally, Ukraine is increasing its sugar export quota to the European Union, granting 15 domestic companies access to expanded export volumes through early August 2025. This move aims to strengthen Ukraine’s position in the European market and capitalize on favorable trade conditions.