Move applies to raw, white and refined sugar exports, while shipments under EU-US quotas, advance authorisation scheme and existing export pipeline remain allowed

The Centre has amended the export policy for sugar, changing the status of exports of raw sugar, white sugar and refined sugar from “Restricted” to “Prohibited” with immediate effect till September 30, 2026, or until further orders, according to a notification issued by the Directorate General of Foreign Trade (DGFT).

The revised policy applies to sugar exported under ITC (HS) Codes 1701 14 90 and 1701 99 90. However, exports to the European Union and the United States under CXL and TRQ quota commitments will continue as per prescribed procedures, while shipments under the Advance Authorisation Scheme (AAS) will remain permitted under the existing Foreign Trade Policy framework.

The government has also allowed exports in cases where consignments are already in the physical export pipeline, including shipments where loading had commenced prior to publication of the notification, vessels that had already berthed or anchored at Indian ports with allotted rotation numbers, and consignments already handed over to customs or custodians before the order came into effect.

The notification further stated that exports may also be permitted on the basis of approvals granted by the Government of India to other countries to meet food security requirements, subject to requests from respective governments. The DGFT added that if the prohibition is not extended beyond September 30, 2026, the export policy for the notified sugar categories will revert to “Restricted”.

Industry body Indian Sugar & Bio-energy Manufacturers Association (ISMA) said the government’s decision appeared to reflect changing production realities during the ongoing sugar season. According to the association, exports were originally permitted in November 2025 based on encouraging production estimates, but output in major producing states such as Maharashtra and Uttar Pradesh was later affected by lower-than-anticipated yields and weather-related disruptions.

“The current sugar season 2025–26 nevertheless remains broadly balanced, and the country is expected to maintain adequate closing stocks at the end of the season,” said Deepak Ballani, Director General, ISMA.

The association estimated that around 6.5 lakh tonnes of sugar exports have already been physically completed, while another 40,000–60,000 tonnes are currently in the export pipeline under previously concluded contracts.

“In view of the evolving domestic supply scenario and climatic uncertainties for the upcoming season 2026–27, including concerns relating to rainfall distribution during the ongoing monsoon period, ISMA acknowledges that the Government may have adopted a precautionary approach aimed at ensuring adequate domestic availability of sugar,” Ballani said.

At the same time, the industry body flagged concerns over the immediate implementation of the restriction, saying it could create practical difficulties in honouring commitments already made to overseas buyers.

“While the industry was anticipating a calibrated review of the export situation, the immediate nature of the present restriction may pose practical challenges in honouring certain export commitments already contracted with overseas buyers,” Ballani said, adding that permitting execution of already concluded contracts could support orderly trade settlement and preserve the credibility of Indian suppliers in global markets.

ISMA said it is examining the implications arising from the latest order in consultation with member mills.