India likely to import sugar for second consecutive year

India, the world's second-largest sugar producer, is expected to import sugar for the second consecutive year after domestic output declines. Prolonged rainfall shortages in Maharashtra and Karnataka have strained supplies, with state authorities prioritising reservoir water for drinking over irrigation needs.

The reduced water availability is expected to lower sugar content in sugarcane scheduled for crushing from October onwards, executives said. India had remained structurally surplus for nearly a decade before being forced to import in the 2025-26 season, when lower output pushed domestic prices to record highs.