Primary sugar crops market in Southern Asia

Earlier Report Observations

Primary sugar crops production in Southern Asia, led by India, increased from 470.6 million tonnes in 2018 to 599.1 million tonnes in 2023. This expansion was initially supported by India's sugarcane pricing framework, including the Fair and Remunerative Price (FRP) system and levy sugar obligations, which stabilized farmer incomes and ensured cane supply for sugar mills.

Output dipped to 473.4 million tonnes in 2020, coinciding with the government's push to liberalize agricultural marketing through model Agricultural Produce Market Committee (APMC) and contract farming Acts. Growth resumed strongly from 2021, driven by ethanol blending programs that created additional demand for sugarcane as a biofuel feedstock. The trend was reinforced by industry investments, such as Vishwaraj Sugar Industries' new ethanol plant announcement in 2022, which expanded processing capacity.

Production reached 599.1 million tonnes in 2023, buoyed by rising consumption of sugar in processed foods and government measures to support farmers, including proposed hikes in the minimum sugar selling price and FRP. In 2024, policy momentum continued with a 7.4% FRP increase and the approval of raw sugar export quotas, while ethanol blending targets were accelerated to 20% by 2025, sustaining the drivers that have expanded the market.

Production primary sugar crops in Southern Asia

In kind, 2017-2020, M t

Top producers of primary sugar crops, 2017-2020

World map of production of primary sugar crops, 2017-2020

Southern Asia's production of primary sugar crops saw a decline after two consecutive years of growth. In 2020, the region produced 473.4 million tonnes, marking a 4.1% decrease from the previous year. Looking at the broader period from 2017 to 2020, production actually increased by 14.5%, with an average annual growth rate of 4.6%. The highest production level was recorded in 2019 at 493.5 million tonnes, while the most significant year-on-year increase occurred in 2018, when production jumped by 13.8%.

Annual dynamics of production in Southern Asia in kind, 2017-2020, M t

Exports primary sugar crops from Southern Asia

Exports in kind, t

The export data for primary sugar crops from Southern Asia shows considerable volatility, reflecting an unstable market environment. In 2019, exports peaked at 574 tonnes, but by 2020 they had plummeted to 173 tonnes—a sharp decline of 69.8% year-on-year. This represents a dramatic swing, with the 2020 figure being just one-third of the 2019 peak. The most notable increase occurred in 2018, when exports surged by 78.6%.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, t

From 2017 to 2020, Kuwait, Qatar, and the United Arab Emirates consistently dominated Southern Asia's exports of primary sugar crops in volume terms. Kuwait accounted for 25.1% of total exports, Qatar for 19.4%, and the UAE for 11.2%. Together, these three countries represented 55.7% of all export flows during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, K $ US

Southern Asia's export earnings from primary sugar crops declined significantly in 2020, reaching $177,200—a 48.1% drop compared to the previous year. Over the four-year span from 2017 to 2020, total export value fell by 20%, translating to an average annual decline of 7.2%. The peak was recorded in 2019 at $341,400, which also saw the largest year-on-year increase of 64.8%.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, K $ US

Between 2017 and 2020, Qatar, the United Arab Emirates, and Kuwait were the top buyers of Southern Asia's primary sugar crops in value terms. Qatar accounted for 17.7% of total export value, the UAE for 12.6%, and Kuwait for 7.7%. However, their combined share amounted to just 38.0%, indicating a relatively diversified export market in terms of value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports primary sugar crops to Southern Asia

Imports in kind, t

The import volume of primary sugar crops into Southern Asia displayed an unstable pattern throughout the period. Imports reached their lowest point in 2020, totaling {value_last_year} tonnes—a sharp 76.5% reduction from the previous year. This followed a peak in 2017, creating a fluctuation of 10.6 times between the high and low points. The most significant increase occurred in 2019, when imports rose by 21.3%.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, t

From 2017 to 2020, Australia remained the primary supplier of primary sugar crops to Southern Asia in volume terms, though its market share was relatively modest at 2.1% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, K $ US

Imports of primary sugar crops into Southern Asia declined for the third straight year in 2020, falling to $108,800—a 28.8% decrease compared to 2019. Over the broader period from 2017 to 2020, import value dropped by 77%, equivalent to an average annual decline of 38.7%.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, K $ US

Between 2017 and 2020, imports of primary sugar crops into Southern Asia in value terms were not heavily concentrated among a few suppliers. The United Arab Emirates accounted for 10.4% of total import value, South Africa for 7.4%, and Thailand for 6.1%. Together, these three countries represented just 23.9% of total import flows, reflecting a diversified supplier base.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020