India, the world’s second-largest sugar producer, has imposed a ban on sugar exports until September 30, 2026, or until further notice. The Directorate General of Foreign Trade, under the Ministry of Commerce and Industry, has modified the export policy for sugar. This change affects the export status of raw sugar, white sugar, and refined sugar, shifting it from ‘Restricted’ to ‘Prohibited’.
The government clarified that this export ban will be in effect until September 30, 2026, or until further orders, whichever comes first. However, exports to the European Union and the United States under specific arrangements will continue following the prescribed procedures. Additionally, sugar exports under the Advance Authorisation Scheme will be governed by the Foreign Trade Policy and Handbook of Procedures.
Previously, India had permitted mills to export approximately 1.59 million metric tonnes of sugar, anticipating surplus production. These export restrictions are anticipated to bolster global raw and white sugar prices, potentially creating export opportunities for other major producers like Brazil and Thailand in various markets. A recent report indicated a 10% year-on-year increase in sugarcane output, supporting the sugar and ethanol industry, albeit with uneven gains primarily seen in mills with integrated ethanol capacity.
