India bans sugar exports until September 2026 to protect domestic supplies

India has imposed a ban on sugar exports until 30 September 2026 in a bid to safeguard domestic supplies and keep prices under control amid concerns over lower-than-expected production.

The Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce and Industry, announced the decision through a notification revising the country’s export policy for sugar.

Under the new rules, the export status of raw sugar, white sugar and refined sugar has been changed from “restricted” to “prohibited”. The restrictions will remain in place until the end of September next year or until further government orders are issued.

The government said the move was aimed at ensuring adequate domestic availability of sugar in one of the world’s largest producing and consuming nations.

However, exports to the European Union and the United States under existing CXL and Tariff Rate Quota (TRQ) arrangements will continue through established procedures outlined in official public notices.

Authorities also clarified that exports carried out under the Advance Authorisation Scheme (AAS) would still be permitted in line with the provisions of the Foreign Trade Policy 2023 and the associated Handbook of Procedures.

India, the world’s second-largest sugar producer after Brazil, had previously approved exports of around 1.59 million metric tonnes after estimating that production would comfortably exceed domestic demand.

The latest restrictions are expected to tighten global sugar supplies and could support international raw and white sugar prices. Analysts believe the curbs may create opportunities for competing exporters such as Brazil and Thailand to increase shipments to markets across Asia and Africa.

The announcement comes shortly after an industry report showed that sugarcane production in India had risen by roughly 10 per cent compared with the previous year, providing support for both sugar manufacturing and ethanol production.

However, the report noted that growth across the sector remained uneven, with stronger gains largely concentrated among mills that have integrated ethanol production facilities.

With IANS inputs