Centre bans sugar exports till September to stabilize domestic prices

The Central government has banned the export of sugar with immediate effect till September 30, 2026, or until further orders.

The Directorate General of Foreign Trade (DGFT) has issued a notification amending the export policy from “Restricted” to “Prohibited”.

Exports to the “EU and USA under CXL and TRQ quota”, exports under the “Advance Authorization Scheme (AAS)”, and government-to-government shipments to meet food security needs of other countries are still allowed. Consignments already in the physical export pipeline are also exempted.

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The notification specifies that if the prohibition is not extended beyond the September deadline, the policy will “revert back to ‘Restricted’.”

Production concerns

The government’s decision comes amid concerns about falling domestic production and rising local prices. There are concerns that production will fall short of domestic consumption for the second consecutive year.

Weak cane yields and forecasts of El Nino disrupting the monsoon have raised fears of further declines in output. Rising domestic prices have added urgency, prompting the government to prioritize food security over export earnings.

Also read: India braces for hotter days, erratic monsoon as 'super El Nino' develops

The move is significant because India is the world’s second-largest sugar producer and a major exporter after Brazil, meaning the ban will ripple across global markets.

Global markets reacted immediately, with New York raw sugar futures climbing more than 2 per cent and London white sugar futures rising by 3 per cent. Exporters in Brazil and Thailand are expected to benefit from India’s absence.