Global Sugar Market Weekly Summary

• China's sugar production forecast for 2025/26 has been revised upward by 800,000 metric tons to 12,500,000 metric tons, a 6.8% increase in national output. Strong sugarcane performance in Guangxi and Yunnan is driving the improvement, with the southern campaign continuing to exceed expectations as the northern beet sugar campaign concludes successfully. The higher domestic output is reducing China's reliance on sugar imports and reinforcing self-sufficiency. Nonetheless, future import volumes and pricing strategies will remain sensitive to global crude oil price movements and supply decisions from major exporters, particularly Brazil.
• Thailand's sugar production holds steady at 10,500,000 metric tons, with domestic consumption recorded at 2,350,000 metric tons, predominantly in the industrial sector. Input and packaging costs have surged by 40%, though industrial buyers have been insulated from pass-through price increases in the interest of market stability. Retail price adjustments are scheduled for May 2026, which may affect household consumption patterns. The Gasahol E20 program also presents a potential redirection of sugarcane toward ethanol production, introducing further variability into sugar output and pricing.
• South Africa is pursuing a significant revitalization of its sugar sector, anchored by an R1.8 billion restoration of the Gledhow Mill. The investment aims to lift production, support local employment, and advance energy efficiency through sugarcane byproduct utilization and biofuel development. The industry continues to face headwinds from import competition and rising costs, particularly for refined sugar, and the long-term success of these initiatives will depend on supportive policy measures and consistent evaluation of their implementation.
• India is shifting strategic focus toward ethanol production from sugarcane as part of a broader effort to reduce dependence on imported liquefied petroleum gas and strengthen energy security. Despite robust current sugar production levels, increased ethanol blending targets could tighten domestic sugar availability and constrain export capacity. India's policy trajectory on this front will be a key variable for global sugar market dynamics in the months ahead.