Rising tensions in West Asia and the surge in fuel prices are beginning to influence the global sugar market, as higher crude oil rates push countries to explore alternative energy sources, according to a report by Agrowon.
Brazil, the world’s largest sugar producer and exporter, is expected to divert more sugarcane towards ethanol production in the 2026–27 season, which begins in April. Industry estimates suggest that mills may prioritise ethanol over sugar as fuel prices rise.
A shift in production could reduce global sugar availability and put upward pressure on international prices.
Brazil exported around 330 lakh tonnes of sugar last year, but exports are likely to decline to about 290 lakh tonnes this season. Overall production is also expected to fall from 430 lakh tonnes to nearly 400 lakh tonnes.
The trend may create opportunities for India in the global market, as lower supplies from Brazil could boost demand for Indian sugar. However, managing exports alongside the domestic ethanol blending programme and keeping prices stable may pose a challenge for policymakers.
Industry experts say the evolving global scenario could significantly impact the sugar sector in the months ahead.
