Raw sugar futures fell as easing local prices in India reduced expectations that the world’s second-biggest producer will need to import as much sugar as previously forecast.The most active contract in New York fell as much as 3 per cent to 17.13 cents per pound on Tuesday. White sugar dropped as much as 3.9 per cent in London.India last week introduced measures to import duty-free raw sugar after local prices surged to records ahead of the festival season. Under the new measures, the government allowed 1 million tons of duty-free imports and also permitted refiners to divert some sugar to the domestic market after refining, instead of exporting it.Domestic prices have since fallen, according to Mike McDougall, an analyst at McDougall Global View, signaling the squeeze is easing and reducing the need for imports.According to Arnaud Lorioz, chief executive officer of Paris-based brokerage Deepcore, part of the reason why fewer imports may be necessary is that some sugar already imported under an advance-authorization system can now be redirected into the domestic market rather than exported.“A meaningful share of the relief arrives without a single new cargo immediately,” he said. India normally allows refiners to import raw sugar duty-free if the processed sugar is subsequently exported under tolling arrangements. In addition, dry weather in Brazil and a higher sugar mix are also weighing on the global market, according to McDougall. Slipping crude prices may encourage Brazilian mills to shift more cane toward sugar production and away from ethanol.More stories like this are available on bloomberg.comPublished on August 26, 2026