India Extends Sugar Export Ban Till September 30 Amid Supply Concerns
Government imposes immediate export prohibition on sugar varieties while exempting select quota based and authorised consignments
NEW DELHI, May 14: The Centre has imposed a complete prohibition on overseas shipments of sugar until September 30, 2026, in a move aimed at regulating domestic availability and market stability.
The decision was announced through a notification issued by the Directorate General of Foreign Trade (DGFT) on May 13. Under the revised policy, exports of raw sugar, white sugar and refined sugar have been shifted from the “Restricted” category to “Prohibited” with immediate effect.
According to the notification, the restriction will remain in force until September 30 this year or until further directives are issued by the government.
However, certain categories have been kept outside the scope of the ban. Sugar exports to the European Union and the United States under the tariff rate quota arrangement will continue without interruption.
The government has also exempted consignments dispatched under the advance authorisation scheme, official government-to-government supply agreements and cargoes that are already in the physical export pipeline.
Trade experts believe the latest measure is intended to ensure sufficient domestic stock and prevent pressure on retail sugar prices amid rising consumption and uncertain global supply conditions.
India, one of the world’s largest sugar producers and exporters, has frequently adjusted export policies in recent years to balance farmer interests, ethanol production requirements and local market demand.
Industry observers said the prohibition could influence global sugar prices, especially in Asian and Middle Eastern markets that depend heavily on Indian supplies.
Officials, however, maintained that the exemptions provided under international quota commitments and existing contractual obligations would help avoid major disruptions in select export channels.
