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India has prohibited sugar exports with immediate effect until September 30, aiming to improve domestic availability and keep prices in check.

The Directorate General of Foreign Trade (DGFT) announced that the export policy for raw, white, and refined sugar has been revised from “restricted” to “prohibited” until the deadline or further orders. Earlier, exports were allowed under a restricted category that required a licence.

However, the ban will not apply to shipments to the European Union and the United States under the CXL and Tariff Rate Quota (TRQ) arrangements, which permit limited exports at reduced or zero customs duty. It also excludes exports under the advance authorisation scheme, government-to-government deals, and consignments already in the pipeline.

For the 2025–26 sugar marketing year (October–September), the government had initially permitted exports of 1.5 million tonnes, later adding another 500,000 tonnes. Of this, only 87,587 tonnes received approval, taking the total allowed exports to nearly 1.6 million tonnes.

The Food Ministry and sugar mills had estimated total shipments of around 750,000 to 800,000 tonnes during the current marketing year.

Meanwhile, India’s sugar production rose 7.32 per cent to 27.52 million tonnes till April in the ongoing season, driven by higher output in Maharashtra and Karnataka, according to the Indian Sugar Mills Association. The industry body has projected total production at 29.3 million tonnes after ethanol diversion, up from 26.12 million tonnes in 2024–25.

The export ban comes amid concerns over inflation and global uncertainties, including tensions in West Asia, with the government seeking to ensure stable domestic prices.

India, the world’s second-largest sugar producer, regulates exports through quotas allocated to mills — a system that has been in place since export restrictions were first introduced in October 2022 and extended periodically since then.