Global Sugar Market Weekly Summary: April 5, 2026

• The global sugar market is on course to return to a surplus in the 2025/26 season, shaped by strong production growth in India, incremental gains in Brazil and Thailand, and an increasingly influential ethanol policy dynamic across major producing nations.
• India has posted a significant production increase, reaching approximately 27,120,000 metric tons through March 2026, a 9% rise year-on-year. The Indian Sugar Mills Association projects the season could peak at 29,300,000 metric tons, representing 12% growth over the prior year. A key driver of this higher sugar output is the downward revision in ethanol production estimates, from 5,000,000 to 3,400,000 metric tons, which redirected more cane toward sugar. The government has also approved exports of 2,000,000 metric tons for the 2025/26 season, adding meaningful volume to global trade flows. Delayed factory operations and ongoing shifts in ethanol policy remain variables to watch.
• In Brazil's Center South region, sugar production edged up 0.7% to 40,250,000 metric tons. However, rising crude oil prices are prompting mills to consider redirecting more cane toward ethanol, which could constrain future sugar output despite projections for a record 44,700,000 metric tons in the upcoming season. The balance between sugar and ethanol allocation will remain closely tied to energy market conditions.
• Thailand maintained steady performance, setting a production target of 10,250,000 metric tons for the season, a modest 2% year-on-year increase broadly in line with local expectations.
• At the global level, agencies including the USDA, Zarnikov, and Green Pool project a surplus ranging from 1,220,000 to 8,300,000 metric tons for 2025/26. This surplus is expected to exert downward pressure on prices, though disruptions such as the Strait of Hormuz closure provide intermittent support. Price stability will likely depend on the interplay between expanded production capacity, particularly from Brazil, and national ethanol policy adjustments in the period ahead.