New Delhi: In a major move aimed at ensuring domestic sugar availability and food security, the Central Government has imposed an immediate ban on sugar exports. According to a notification issued by the Directorate General of Foreign Trade (DGFT), the export policy for sugar has been changed from “Restricted” to “Prohibited.”
As per the notification issued on May 13, 2026, exports of raw sugar, white sugar and refined sugar will remain banned until September 30, 2026, or until further orders.
The government clarified that the restriction will not apply to exports to the European Union (EU) and the United States under the CXL and TRQ quota systems. Exports under the Advance Authorisation Scheme (AAS), government-to-government shipments for food security purposes and consignments already in the export pipeline have also been exempted.
Meanwhile, industry experts believe that the move could lead to excess sugar supply in the domestic market, resulting in a likely fall in sugar prices. This may cause significant losses to sugar mills, traders and sugarcane farmers.
With exports halted, surplus sugar will remain within the country, increasing financial pressure on sugar factories. Industry sources fear that the decision could affect cane payments, FRP dues and pricing for the upcoming crushing season.
While the government’s objective is believed to be protecting consumers and maintaining adequate domestic stock, the decision is expected to create fresh financial challenges for the sugar industry and sugarcane growers across the country.
