India on Wednesday banned sugar exports till September 30, 2026, in a move aimed at boosting domestic availability and keeping prices in check amid inflation concerns and global uncertainty linked to the West Asia conflict.
The Directorate General of Foreign Trade (DGFT) said in a notification dated May 13 that the export policy for raw, white and refined sugar has been changed from “Restricted” to “Prohibited” with immediate effect.
"The export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar)...is amended from 'Restricted' to 'Prohibited' with immediate effect till September 30, 2026, or until further orders, whichever is earlier," the DGFT said.
The ban will not apply to exports to the European Union and the United States under the CXL and Tariff Rate Quota (TRQ) arrangements, which allow shipments of specified sugar quantities at reduced or zero customs duty.
The order also excludes exports under the advance authorisation scheme, government-to-government deals, and consignments already in the physical export pipeline.
For the 2025-26 sugar marketing year (October-September), the Food Ministry had initially permitted exports of 15 lakh tonnes and later opened an additional 5 lakh tonnes quota, of which only 87,587 tonnes were approved. In total, nearly 16 lakh tonnes of exports had been cleared.
The government and sugar mills had projected outbound shipments of 7.5-8 lakh tonnes during the current marketing year.
According to the Indian Sugar and Bio-energy Manufacturers Association (ISMA), India’s sugar production rose 7.32 per cent to 27.52 million tonnes till April in the 2025-26 season, driven by higher output in Maharashtra and Karnataka.
ISMA has estimated total sugar production for 2025-26 at 29.3 million tonnes after ethanol diversion, compared with 26.12 million tonnes in the previous season.
India, the world’s second-largest sugar producer, has kept sugar exports under government control through quotas allocated to mills. Export restrictions on sugar were first imposed in October 2022 and extended periodically thereafter.
(With inputs from PTI)
