Sugar futures declined after India’s government announced duty-free imports of 1 million metric tons of raw sugar, temporarily easing supply constraints that had driven prices to multi-month highs.
Raw sugar futures on ICE fell 0.8% to 17.38 cents per pound at 1220 GMT on Friday, paring a 4.8% gain from Thursday’s peak of 18.26 cents—the highest level in over a year. White sugar futures on the same exchange dropped 0.5% to $537.70 per metric ton, retracing from Thursday’s high of $566.80, the strongest since March 2025.
India, the world’s second-largest sugar producer, authorized the duty-free imports through October 31 to curb domestic price inflation amid tightening supplies. The policy shift follows a series of adverse weather conditions that have constrained global output. Crop shortfalls in Europe due to drought, reduced Brazilian production following excessive rainfall in June, and the El Niño weather pattern’s threat of drier conditions in Asia have all contributed to tighter sugar markets.
Broker and consultant Michael McDougall noted that the market appears to be awaiting the weekly Commitments of Traders report before committing to a sustained move above 18 cents per pound, as recent gains failed to hold above that threshold.
