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Sugar futures drop after India’s duty-free import details emerge

Analysts say India may not be able to import more than 500,000 tons under the duty-free plan, even as New York raw sugar had surged more than 6% last week.

Reported · Written up by our desk · Energy

Sugar futures fell in both London and New York as traders digested India’s decision to allow mills and refiners to import duty-free raw sugar. LiveMint Markets reported the move prompted investors to reassess how much India can actually bring in under the policy’s terms.

According to LiveMint Markets, raw sugar futures in New York slid as much as 3% on Monday, while the most-active white sugar contract in London dropped as much as 3.9%, its biggest fall in more than three months. The selloff came after New York raw sugar had risen more than 6% last week when India opened duty-free imports of up to 1 million tons through Oct. 31.

The story highlighted that expectations have shifted toward a smaller import outcome. Harsh Soni, a New Delhi-based sugar analyst and co-founder at Greenleaf, said traders are focusing on notification details like the time limit, import prices, and emerging consensus that India will not be able to import more than 500,000 tons, according to LiveMint Markets.

LiveMint Markets also noted that price strength before the policy change was supported by India’s supply tightness, concern about a stronger-than-usual El Niño pattern, and processing disruptions in Brazil. The article said those factors had pushed the 14-day relative strength index above 70, while analysts at GreenPool described the import order as difficult, potentially helping cargoes already afloat and mills with enough refining capacity before the new harvest season starts.

Latest closeSugar $16.60 ▼1.3%

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