Sugar exports banned till Sept 30 to check prices

NEW DELHI: Union govt has banned the export of sugar till Sept 30 this year with immediate effect, a move aimed at enhancing domestic availability and preventing any price rise. Earlier, the exports were under a restricted category, under which a licence was required for the outbound shipments. “The export policy of sugar (raw sugar, white sugar and refined sugar)... is amended from ‘restricted’ to ‘prohibited’ with immediate effect till Sept 30, 2026, or until further orders, whichever is earlier,” the directorate general of foreign trade (DGFT) stated in a recent notification.

This order, however, does not apply to sugar being exported to the European Union and the US under the CXL and Tariff Rate Quota (TRQ) arrangement, respectively. The arrangements allow exporters to ship specified quantities of sugar to these destinations at significantly reduced or zero customs duties.

The DGFT order is also not applicable to the shipments under the advance authorisation scheme, govt-to-govt exports and consignments already in the physical export pipeline.

For the 2025-26 sugar marketing year (Oct to Sept), govt initially allowed 15 lakh tonne for exports, and then opened an additional 5 lakh-tonne pool, of which only 87,587 tonne were approved.

The food ministry and sugar mills were expecting 7.5-8 lakh tonne of shipments in 2025-26 marketing year.

India’s sugar production rose 7.3% to 275 lakh tonne till April in the 2025-26 marketing season, driven by higher output in Maharashtra and Karnataka, according to industry body ISMA. It has projected total production for the 2025-26 marketing season at 293 lakh tonne after ethanol diversion, up from 261 lakh tonne recorded in 2024-25.

Banning exports of a commodity helps prevent a rise in prices amid inflation concerns and uncertainty caused by the West Asia conflict.

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