India bans sugar exports till Sept 2026; exempts EU, U.S. quota shipments

India on Wednesday banned the export of sugar with immediate effect, with the Directorate General of Foreign Trade (DGFT) amending the export policy for sugar from “Restricted” to “Prohibited” with immediate effect till September 30, 2026, or until further orders.

The notification, issued by the Directorate General of Foreign Trade under the Ministry of Commerce and Industry on May 13, applies to raw sugar, white sugar, and refined sugar.

“The export policy of sugar (Raw Sugar, White Sugar and Refined Sugar) under ITC (HS) Codes 1701 14 90 and 1701 99 90 is amended from ‘Restricted’ to ‘Prohibited’ with immediate effect till September 30, 2026, or until further orders, whichever is earlier,” the DGFT said in the notification.

However, the government has carved out multiple exemptions to ensure continuity of committed exports and strategic supplies. The prohibition will not apply to sugar exports to the European Union and the United States under CXL and tariff rate quota (TRQ) arrangements. Exports under the advance authorization scheme (AAS) will also continue under the existing provisions of the foreign trade policy and handbook of procedures.

In addition, the centre said sugar exports would be allowed on the basis of specific permission granted by the Government of India to other countries to meet their food security requirements and upon requests from foreign governments.

The notification also protects consignments already in the export pipeline. According to the DGFT, shipments where loading had commenced before publication of the notification, or where shipping bills had already been filed and vessels berthed or anchored at Indian ports with rotation numbers allotted, will be allowed. Consignments handed over to customs or custodians before the notification and registered in electronic systems with verifiable timestamps will also be eligible for export.

“This prohibition is not applicable to sugar being exported under: (i) EU and USA under CXL and TRQ quota, (ii) Advance Authorization Scheme (AAS), (iii) Government-to-Government exports, and, (iv) consignments already in physical export pipeline,” the notification said.

The DGFT further clarified that if the prohibition is not extended beyond September 30, 2026, the export policy for the two sugar categories will automatically revert to “restricted”.

The move comes amid concerns over domestic sugar availability and price stability, with the government prioritising local supply and food security.