The Directorate General of Foreign Trade (DGFT) issued a notification revising the export status of sugar from “Restricted” to “Prohibited,” effectively halting overseas shipments of raw, white, and refined sugar with immediate effect.
The decision comes at a time when India, the world’s second-largest sugar producer and among the top exporters globally, is facing fears of lower cane output for the second consecutive year. Officials are reportedly concerned that weaker crop yields and uncertain monsoon conditions could tighten domestic supply further in the coming months.
Despite the broad restriction, the government has carved out several exemptions. Sugar exports to the European Union and the United States under tariff-rate quotas (TRQ) and CXL quotas will continue. Shipments under the Advance Authorisation Scheme (AAS) and government-to-government exports meant for food security assistance to other nations are also exempted from the ban.
Additionally, consignments that had already entered the export pipeline before the notification was issued will still be allowed to leave the country under specific conditions. These include shipments where loading had already started, vessels had berthed at ports, or customs documentation had been completed before the order came into effect.
Industry observers say the move could have a direct impact on global sugar prices. International sugar futures reportedly rose shortly after India announced the export curb, with traders expecting countries like Brazil and Thailand to fill the supply gap in Asian and African markets.
Earlier this year, India had permitted sugar mills to export around 1.59 million metric tonnes, anticipating surplus production. However, revised output estimates and concerns over domestic consumption have now prompted the Centre to prioritise local availability over exports.
The latest restriction is also expected to affect exporters and trading firms that had already signed overseas contracts based on the earlier export permissions. Market experts believe fulfilling pending commitments may become challenging under the new policy framework.
