The Union Government has imposed an immediate ban on sugar exports till September 30, 2026, or until further notice, citing concerns over lower domestic production and the possibility of rising prices amid a deficit monsoon forecast by the India Meteorological Department.
In a notification issued on May 13, the Ministry of Commerce classified sugar exports as “prohibited”. However, exports to the United States and the European Union under special quota arrangements, CXL and TRQ, will continue.
The move comes amid fears that lower sugar output, particularly in major producing states such as Uttar Pradesh and Maharashtra, coupled with a weak monsoon, could trigger a sharp rise in domestic sugar prices in the coming months.
India’s sugar production season runs from October 1 to September 30. For the current 2025-26 season, production is estimated to remain below 28 million tonnes.
In November 2025, the Centre had allowed the export of 1 million tonnes of sugar following optimistic production estimates. In February this year, an additional 5 lakh tonnes were cleared for export due to weak domestic demand and favourable international prices.
Since then, India has physically exported around 6.5 lakh tonnes of sugar, while another 40,000 to 60,000 tonnes remain in the export pipeline under previously approved contracts.
Industry body Indian Sugar & Bio-energy Manufacturers Association (ISMA) has urged the government to allow execution of already concluded export deals.
“The immediate nature of the current restriction may pose practical challenges in honoring certain export commitments already made with overseas buyers,” said ISMA Director General Deepak Ballani.
He urged the government to permit fulfilment of existing contracts to ensure orderly trade settlements and maintain the credibility of Indian sugar suppliers in the global market.