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New Delhi, 14 May. India, the world’s second largest sugar producing country, has banned the export of sugar till September 30 or further orders. The reason for this is to keep sugar prices under control by increasing domestic availability amidst the possibility of low production. The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry has issued a notification amending the export policy of sugar. According to the notification, the export status of raw sugar, white sugar and refined sugar has been changed from ‘Restricted’ to ‘Prohibited’. The government said that this ban will remain in force till September 30, 2026 or until further orders, whichever is earlier.

However, the government said exports under CXL and Tariff Rate Quota (TRQ) arrangements to the EU and the United States will continue as per the procedures laid down in the respective public notifications. The Government further clarified that sugar exports under the Advance Authorization Scheme (AAS) will continue to be governed by the provisions of the Foreign Trade Policy (FTP), 2023 and Handbook of Procedures, 2023. India, the world’s biggest sugar exporter after Brazil, had earlier allowed mills to export about 1.59 million metric tonnes of sugar in anticipation of production exceeding domestic demand.

The restrictions imposed on exports are expected to support raw and white sugar prices globally, as well as open up export opportunities to Asian and African markets for rival producers such as Brazil and Thailand. Additionally, a recently released report noted that sugarcane production increased by nearly 10 percent year-on-year, supporting the sugar and ethanol ecosystem, although this growth remained uneven and mainly limited to mills with integrated ethanol capacity.