New Delhi, May 14: India, the world’s second-largest sugar producer, has imposed a ban on sugar exports until September 30 or until further notice. This decision aims to increase domestic availability and control sugar prices amid concerns over lower production.
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has issued a notification amending the sugar export policy.
According to the notification, the export status of raw sugar, white sugar, and refined sugar has been changed from ‘restricted’ to ‘prohibited.’
The government stated that this ban will remain in effect until September 30, 2026, or until further notice, whichever comes first.
However, the government clarified that exports to the European Union and the United States will continue under the CXL and Tariff Rate Quota (TRQ) arrangements, following the procedures outlined in relevant public notifications.
Additionally, the government specified that sugar exports under the Advance Authorization Scheme (AAS) will still be governed by the provisions of the Foreign Trade Policy (FTP) 2023 and the 2023 procedure handbook.
After Brazil, India is the world’s largest sugar exporter and had previously allowed mills to export approximately 1.59 million metric tons of sugar, anticipating production to exceed domestic demand.
The export restrictions are expected to support global prices for raw and white sugar, while also opening up export opportunities in Asian and African markets for competing producers like Brazil and Thailand.
Furthermore, a recent report indicated that sugarcane production has increased by nearly 10 percent year-on-year, bolstering the sugar and ethanol ecosystem. However, this growth has been uneven and primarily limited to mills with integrated ethanol capacity.
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