New Delhi: India — the world’s second-largest sugar producer — has prohibited exports till September 30, 2026 or until further orders in a move aimed at ensuring domestic availability and containing local prices amid concerns over lower production.
The Directorate General of Foreign Trade (DGFT) — under the Ministry of Commerce and Industry — has issued a notification amending the export policy for sugar.
According to the notification, the export status of raw sugar, white sugar and refined sugar has been changed from ‘Restricted’ to ‘Prohibited’.
The government said the ban would remain in force till September 30, 2026 or until further orders, whichever is earlier.
However, exports to the European Union and the United States under CXL and Tariff Rate Quota (TRQ) arrangements will continue as per prescribed procedures under relevant public notices, the government said.
The government further clarified that sugar exports under the Advance Authorisation Scheme (AAS) would continue to be governed by the provisions of the Foreign Trade Policy (FTP), 2023, and the Handbook of Procedures, 2023.
The nation — among the world’s biggest sugar exporters after Brazil — had earlier allowed mills to export around 1.59 million metric tonnes of sugar on expectations that production would exceed domestic demand.
The export curbs are expected to support global raw and white sugar prices, while potentially opening export opportunities for rival producers such as Brazil and Thailand in Asian and African markets.
Separately, a recently released report highlighted that sugarcane output rose around 10 per cent year-on-year, supporting the sugar and ethanol ecosystem, although gains remained uneven and were largely limited to mills with integrated ethanol capacity.
