Sugar under pressure – dynamic changes in European and global markets [World News]

Sugar developments in Europe

The European Union is planning to introduce significant restrictions on sugar imports from Ukraine after complaints from farmers about a price collapse caused by a large influx of cheaper sugar from the East. However, sugar prices in Europe are influenced by a number of factors and all indications are that the market is heading for a deficit. EU sugar prices fell to €557 per tonne in January, reflecting low contracts for the 2024/25 season, with companies such as Sudzucker and Agrana reporting losses and Agrana announcing the closure of two plants in Europe. EU sugar beet acreage is expected to fall by 5-8% in the 2025/26 season and beet purchase prices are expected to fall. Experts predict a rebound in sugar prices.

Global sugar market situation

Traders expect sugar prices to rise in the coming months, helped by reduced production and a seasonal increase in demand during the summer months. Despite a decline in production and exports of 1 million tonnes of sugar, India – the world’s second largest sugar producer – is ensuring that it will start the new season with sufficient stocks of the commodity in October 2025. Indian sugar mills have 5.4 million tonnes of stocks available, which should cover domestic demand in the key months of the year, while allowing for further exports. Sugar production is also expected to increase for next season. The government is monitoring the situation, but will only intervene if necessary.

We encourage you to read the interesting article: Overview of sugar and its alternatives in the food industry