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%Sugar prices have fallen to their lowest level in more than three years on news that India is ramping up its exports of the widely used sweetener.

India, the world's second largest sugar producer, has announced that it will allow one million metric tons of exports through to the end of September this year.

India’s government is increasing its exports of sugar to support local sugar mills in the nation of more than one billion people.

Commodities analysts and traders have expressed surprise at India’s decision given that sugar production this year is expected to be below consumption for the first time in eight years.

Some analysts say the long-term effect will be to keep pressure on global sugar prices.

The price of white sugar has declined to $470.20 U.S. a ton, its lowest level since September 2021.

India's sugar production is forecast to be around 27 million tons this year, down from 32 million tons in 2024 and below annual consumption of more than 29 million tons.

In 2024, India’s government banned all exports of sugar to ensure adequate domestic supply for its citizens. That ban helped to support global prices of the commodity.

But now, India's government is reversing course after the nation’s sugar mills suffered economic hardship over the past year.

Sugar prices have also come under pressure in recent weeks on concerns that Thailand may have more of the sweetener to sell because of a halt in its syrup exports to China.

Already in 2025, the price of sugar is down 5%, with further declines expected among analysts and traders.