Indonesia issues 3.1 mil mt raw sugar import quota for 2026

Indonesia has issued raw sugar import licenses totaling 3.1 million metric tons for 2026, multiple Asia-based trade sources and a Jakarta-based importer said Feb. 2, with the permits effective immediately.

Indonesia, the world's second-largest sugar importer after China, has allocated 60% of the quota for refiners, or 1.8 million mt, and 40% for millers, or 1.3 million mt, the sources said, down from 3.45 million mt in 2025.

Some ships have begun loading sugar cargoes for Indonesia, a Bangkok-based origination manager at a trading house said.

Data from S&P Global Commodities at Sea showed two ships in transit to Indonesia as of Feb. 5. Bettle, a Handymax ship, loaded in Laem Chabang, Thailand, on Jan. 24 and is headed for Tanjung Perak, while Jin Ping, a Supramax ship, loaded in Santos, Brazil, on Jan. 27 and is bound for Cigading.

Indonesia's Ministry of Trade did not respond to a request for comment.

Lower quota extends import downtrend

The reduced import quota is consistent with declining Indonesian import needs amid softer consumption and rising domestic output, said Varunesh Singh, principal research analyst for soft commodities at S&P Global Energy CERA.

"Persistently weaker Indonesian demand has already been factored into sugar prices, with futures trading near multiyear lows," Singh said.

ICE New York No. 11 raw sugar futures have been under pressure in recent months, with the March (H) contract falling to 14.10 cents/lb on Nov. 7, 2025, its lowest level since October 2020.

S&P Global CERA forecasts Indonesia will import around 4 million mt of raw sugar in 2026, while domestic consumption is projected at 7.56 million mt.

Indonesia imported 5.31 million mt of sugar in 2024, marking a second consecutive annual decline from a peak of 6 million mt in 2022, according to data from S&P Global Market Intelligence's Global Trade Atlas.

Platts last assessed the FOB premium for Thai HiPol raw sugar spot shipments stable week over week at 105 points over ICE New York No. 11 March (H) 2026 futures on Jan. 29.