Govt prohibits sugar exports till September for domestic availability

India, the world’s second‑largest sugar producer, has banned exports until September 30, 2026 or until further notice, seeking to safeguard domestic supply and curb local price rises amid worries of reduced output.

The Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce and Industry, released a notice that updates the sugar export policy.

As per the notice, the export classification for raw, white and refined sugar has shifted from ‘Restricted’ to ‘Prohibited’.

Officials stated that the prohibition will stay effective until September 30, 2026 or until a subsequent order, whichever occurs first.

Nevertheless, shipments to the European Union and the United States under CXL and Tariff Rate Quota (TRQ) schemes will proceed according to existing procedures outlined in pertinent public notices.

The government added that sugar exports conducted via the Advance Authorisation Scheme (AAS) will remain subject to the rules of the Foreign Trade Policy (FTP) 2023 and the Handbook of Procedures 2023.

India, ranked among the top sugar exporters globally behind Brazil, previously permitted mills to ship roughly 1.59 million metric tonnes of sugar, anticipating that output would surpass domestic needs.

The export restrictions are likely to bolster worldwide raw and white sugar prices, while possibly creating export openings for competitors like Brazil and Thailand in Asian and African markets.

(With inputs from IANS)