The Central government has banned sugar exports with immediate effect till September 30, 2026, in a move aimed at boosting domestic availability and preventing a rise in prices.
According to a notification issued by the Directorate General of Foreign Trade (DGFT), the export policy for raw sugar, white sugar and refined sugar has been changed from “restricted” to “prohibited”.
Earlier, sugar exports were allowed under a restricted category, which required exporters to obtain a licence before shipments.
The latest order will remain in force till September 30, 2026, or until further notice.
However, the ban will not apply to sugar exports to the European Union and the United States under special quota arrangements such as the CXL and Tariff Rate Quota (TRQ) schemes. These arrangements allow Indian exporters to ship limited quantities of sugar at lower or zero customs duty.
The restriction also does not affect exports under the advance authorisation scheme, government-to-government deals, and consignments that are already in the export pipeline.
For the 2025-26 sugar marketing season, which runs from October to September, the government had initially permitted exports of 15 lakh tonnes of sugar. Later, an additional export quota of 5 lakh tonnes was approved, although only around 87,587 tonnes received shipment clearance.
The Food Ministry and sugar mills had expected total exports of around 7.5 to 8 lakh tonnes during the current marketing year.
India’s sugar production has remained strong this season. According to the Indian Sugar and Bio-energy Manufacturers Association (ISMA), sugar production rose 7.3% to 275 lakh tonnes till April 2026, mainly due to better output in Maharashtra and Karnataka.
ISMA has projected total sugar production for the 2025-26 season at 293 lakh tonnes after ethanol diversion, compared to 261 lakh tonnes in the previous season.
The government’s decision to ban exports is being viewed as a precautionary step to control domestic sugar prices amid inflation concerns and global uncertainty linked to the ongoing West Asia conflict.
Relevant entities in this development include Directorate General of Foreign Trade and Indian Sugar and Bio-energy Manufacturers Association.
