New Delhi, May 14 (IANS): India has prohibited exports of raw sugar, white sugar, and refined sugar until September 30, 2026, or until further orders, in a move aimed at ensuring domestic availability and containing local prices amid concerns over lower production, the Directorate General of Foreign Trade (DGFT) announced. The export policy status for all three categories of sugar has been changed from ‘Restricted’ to ‘Prohibited’, with the ban applying to the world’s second-largest sugar producer and one of the biggest sugar exporters globally after Brazil. However, exports to the European Union and the United States under CXL and Tariff Rate Quota arrangements will continue as per prescribed procedures, while sugar exports under the Advance Authorisation Scheme will continue to be governed by the provisions of the Foreign Trade Policy 2023 and the Handbook of Procedures 2023. The government had earlier allowed mills to export around 1.59 million metric tonnes of sugar on expectations that production would exceed domestic demand, but the latest ban signals a shift in policy priorities toward securing domestic supply.
The export curbs are expected to support global raw and white sugar prices while potentially opening export opportunities for rival producers such as Brazil and Thailand in Asian and African markets. A recently released report highlighted that sugarcane output rose around 10 per cent year-on-year, supporting the sugar and ethanol ecosystem, although gains remained uneven and were largely limited to mills with integrated ethanol capacity. The prohibition underscores the government’s determination to keep domestic sugar prices in check and maintain adequate availability for Indian consumers, particularly during a period of production uncertainty that has prompted policymakers to take a cautious approach toward allowing outbound shipments of the commodity.