The Centre on Wednesday imposed an immediate ban on sugar exports until September 30 or until further orders, aiming to curb domestic prices and ensure sufficient local supply amid worries about lower production. The Directorate General of Foreign Trade (DGFT) issued the notification changing the export policy for sugar from “restricted” to “prohibited,” citing ITC (HS) Codes 1701 14 90 and 1701 99 90.
The order covers raw, white and refined sugar and will remain in force until September 30 unless extended; if not extended, the policy will revert to “restricted.” The DGFT said the ban takes effect immediately while specifying conditions under which exports already in the pipeline may proceed.
The government exempted certain shipments from the prohibition. Exports to the European Union and the United States under CXL and TRQ quotas will continue, as will shipments under the Advance Authorisation Scheme (AAS) and government-to-government consignments for food-security purposes. The notification allows shipments where loading had begun before the notice, where the shipping bill had been filed and the vessel had berthed or anchored at an Indian port, or where consignments had already been handed over to customs authorities or custodians before the notification’s publication.
According to Reuters, the move reflects concerns that sugar production will fall short of consumption for a second straight year because of weakening sugarcane yields in key growing regions. Fears that El Niño could disrupt the upcoming monsoon have also raised anxiety about next season’s output. India had earlier allowed mills to export 1.59 million tonnes; traders had contracts for about 800,000 tonnes and had shipped more than 600,000 tonnes.
“A government had provided additional export quotas in February, which encouraged traders to sign export deals. It will now be a headache for traders to fulfill those export orders,” a Mumbai-based dealer with a global trade house told Reuters. Following the announcement, New York raw sugar futures rose more than 2% and London white sugar futures jumped about 3%.
Original Source: https://timesofindia.indiatimes.com/business/india-business/india-bans-sugar-exports-until-september-2026-amid-supply-concerns-report/articleshow/131079960.cms
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Publish Date: 2026-05-14 06:43:00
