The Crossbill News Desk
In a significant trade policy intervention aimed at stabilising domestic markets, the Union government has imposed an immediate ban on sugar exports, citing the need to ensure sufficient domestic availability and contain price pressures amid inflation concerns and fluctuating production estimates.
According to a notification issued by the Directorate General of Foreign Trade under the Union commerce ministry, the export status of sugar has been revised, The Times of India reported.
“Export of Sugar is prohibited with immediate effect till September 30, 2026, or till further orders, whichever is earlier,” read the notification, which amended the ITC (HS) Codes classification from “restricted” to “prohibited.”
The prohibition covers shipments of raw sugar as well as white and refined varieties. Sugar exports from India are generally regulated through a quota mechanism allocated among mills under government supervision.
The move comes amid expectations of a potential rise in global sugar prices during the April–June quarter, which could have exerted upward pressure on domestic rates, according to earlier reports.
However, the government clarified that the restriction will not apply to exports destined for the European Union and the United States under existing CXL and Tariff Rate Quota (TRQ) arrangements, provided exporters follow the procedures outlined in relevant public notices.
Shipments already in the export pipeline have also been granted exemptions under specified conditions, while exports carried out through the Advance Authorization Scheme (AAS) will continue in accordance with the Foreign Trade Policy, 2023, and the Handbook of Procedures, 2023.
India remains the world’s largest producer and consumer of sugar and ranks as the second-largest exporter globally. 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 pool of 5 lakh tonnes, though only 87,587 tonnes received approval, taking the total permitted exports to nearly 16 lakh tonnes.
Industry data from the Indian Sugar & Bio-energy Manufacturers Association indicates that sugar production rose by 7.32% to 27.52 million tonnes up to April in the ongoing marketing season, supported by stronger output in Maharashtra and Karnataka.
The latest decision echoes earlier policy interventions, including export restrictions imposed in 2022–23 following concerns over supply shortages, and the continuation of shipment curbs despite a bumper harvest in 2023–24, underscoring the government’s continued focus on safeguarding domestic supply and price stability.
According to a notification issued by the Directorate General of Foreign Trade under the Union commerce ministry, the export status of sugar has been revised, The Times of India reported.
“Export of Sugar is prohibited with immediate effect till September 30, 2026, or till further orders, whichever is earlier,” read the notification, which amended the ITC (HS) Codes classification from “restricted” to “prohibited.”
The prohibition covers shipments of raw sugar as well as white and refined varieties. Sugar exports from India are generally regulated through a quota mechanism allocated among mills under government supervision.
The move comes amid expectations of a potential rise in global sugar prices during the April–June quarter, which could have exerted upward pressure on domestic rates, according to earlier reports.
However, the government clarified that the restriction will not apply to exports destined for the European Union and the United States under existing CXL and Tariff Rate Quota (TRQ) arrangements, provided exporters follow the procedures outlined in relevant public notices.
Shipments already in the export pipeline have also been granted exemptions under specified conditions, while exports carried out through the Advance Authorization Scheme (AAS) will continue in accordance with the Foreign Trade Policy, 2023, and the Handbook of Procedures, 2023.
India remains the world’s largest producer and consumer of sugar and ranks as the second-largest exporter globally. 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 pool of 5 lakh tonnes, though only 87,587 tonnes received approval, taking the total permitted exports to nearly 16 lakh tonnes.
Industry data from the Indian Sugar & Bio-energy Manufacturers Association indicates that sugar production rose by 7.32% to 27.52 million tonnes up to April in the ongoing marketing season, supported by stronger output in Maharashtra and Karnataka.
The latest decision echoes earlier policy interventions, including export restrictions imposed in 2022–23 following concerns over supply shortages, and the continuation of shipment curbs despite a bumper harvest in 2023–24, underscoring the government’s continued focus on safeguarding domestic supply and price stability.
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