New Delhi, May 14
The Centre has prohibited sugar exports with immediate effect till September 30, 2026, in a move aimed at strengthening domestic availability and controlling prices amid inflation concerns and uncertainty arising from the ongoing West Asia conflict.
According to a notification issued by the Directorate General of Foreign Trade on May 13, the export policy for raw sugar, white sugar and refined sugar has been changed from “restricted” to “prohibited.” Earlier, exporters were permitted to ship sugar overseas only after obtaining government licenses.
The order, however, will not apply to sugar exports to the European Union and the United States under the CXL and Tariff Rate Quota arrangements. These mechanisms allow exporters to send specified quantities of sugar at reduced or zero customs duty.
The notification also clarified that the restriction would not affect exports under the advance authorisation scheme, government-to-government agreements and consignments already in the export pipeline.
For the 2025- 26 sugar marketing season, the Food Ministry had initially allowed exports of 15 lakh tonnes and later opened an additional export pool of 5 lakh tonnes. However, only a limited quantity from the additional allocation received approval.
Government officials and sugar mills had estimated exports of around 7.5 to 8 lakh tonnes during the current marketing season.
Industry body Indian Sugar Mills Association said India’s sugar production increased by 7.32 per cent to 27.52 million tonnes till April in the 2025 to 26 marketing season, mainly due to higher production in Maharashtra and Karnataka. ISMA has projected total sugar production at 29.3 million tonnes after ethanol diversion, up from 26.12 million tonnes recorded in the previous season.
Officials maintained that restricting exports of essential commodities helps prevent price escalation in the domestic market during periods of economic uncertainty and global instability. India, the world’s second-largest sugar producer, has regulated sugar exports through quota-based allocations to mills since export restrictions were introduced in October 2022.
