Centre Prohibits Sugar Exports Till Sept, 2026 Over Domestic Supply Concerns

Centre Prohibits Sugar Exports Till Sept, 2026 Over Domestic Supply Concerns 

New Delhi, May 14 (KNN) The Centre has prohibited sugar exports until September 30, 2026, citing domestic supply concerns, according to a notification issued under the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade Policy 2023.

The government said exports of sugar, including raw, white and refined varieties classified under Chapter 17 of the Indian Trade Clarification based on Harmonized System (ITC-HS) Schedule 2, will remain prohibited with immediate effect until September 30, 2026, or until further orders, whichever is earlier.

EU, US Quota Shipments Exempt From Ban 

However, the restriction will not apply to sugar exports to the European Union and the United States under the CXL and Tariff Rate Quota (TRQ) arrangements, which will continue as per prescribed procedures outlined in relevant public notices.

The government also clarified that sugar exports under the Advance Authorisation Scheme (AAS) will continue to be governed under existing provisions of the Foreign Trade Policy 2023 and the Handbook of Procedures 2023.

The notification comes into effect immediately, and the transitional arrangement provisions under Para 1.05 of the Foreign Trade Policy 2023 will not be applicable.

The move is aimed at ensuring adequate domestic availability of sugar and stabilising prices in the local market amid concerns over supply pressures.

ICRA Warns Of Lower Stocks, Production Risks 

Investment Information and Credit Rating Agency (ICRA) Vice President, Rachit Mehta said the sugar export ban until September 2026 will help contain domestic prices and ensure adequate supplies amid lower inventory levels and weaker production prospects.

He noted that while the government had earlier allowed 2 million metric tonnes of exports for SY2026, net sugar production after ethanol diversion is now estimated at around 28 million metric tonnes, below earlier expectations. 

With domestic consumption at 28.3 million metric tonnes and 0.7 million metric tonnes already exported, closing stocks may fall to around 4.3 million metric tonnes by September 2026. He added that the SY2027 season could face further risks from El Niño.

(KNN Bureau)