The below-normal monsoon has significant implications for India's agriculture, particularly for sugarcane production, which is heavily reliant on rainfall. Reduced rainfall could strain water resources, affecting crop yields and potentially leading to lower sugar output. This comes at a time when global sugar markets are already under pressure due to adverse weather conditions in other major producing countries like Brazil and Thailand. A global sugar deficit is anticipated for the 2026/27 season, which could lead to higher sugar prices and impact both domestic and international markets.