India bans sugar exports till Sept 2026 as government moves to cool domestic prices, ensure supply

India has banned sugar exports with immediate effect until September 30, 2026, or until further orders, according to a notification issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.

The notification, dated May 13, 2026, amends the export policy for sugar from “Restricted” to “Prohibited” under Chapter 17 of the ITC (HS) classification. The order applies to raw sugar, white sugar and refined sugar falling under ITC (HS) codes 1701 14 90 and 1701 99 90.

“The export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar) under ITC (HS) Codes 1701 14 90 and 1701 99 90 is amended from ‘Restricted’ to ‘Prohibited’ with immediate effect till September 30, 2026, or until further orders, whichever is earlier,” the DGFT notification said.

The move comes as the government seeks to cool domestic sugar prices and ensure adequate local availability, according to reports by Mint⁠ and Reuters⁠.

The prohibition will not apply to sugar exports to the European Union and the United States under CXL and Tariff Rate Quota (TRQ) arrangements. Exports under the Advance Authorisation Scheme (AAS) will also continue under existing provisions of the Foreign Trade Policy, 2023.

In addition, the government said exports may still be allowed on the basis of permissions granted by India to other countries to meet their food security requirements and based on requests from foreign governments.

The notification also exempts consignments that are already in the export pipeline. These include shipments where loading of sugar onto vessels had commenced before publication of the notification in the Official Gazette; cases where shipping bills had been filed and vessels had already berthed or anchored at Indian ports with rotation numbers allocated by port authorities; and consignments already handed over to customs or custodians and registered in electronic systems with verifiable records.

The DGFT clarified that the transitional arrangement provisions under Paragraph 1.05 of the Foreign Trade Policy, 2023, would not apply to this notification.

The order comes into effect immediately.

The government further stated that if the prohibition is not extended beyond September 30, 2026, the export policy for sugar under the relevant HS codes will automatically revert to “Restricted”.

India, one of the world’s largest sugar producers and exporters, has previously used export controls to manage domestic supplies and contain food inflation. The latest order is expected to tighten availability in the global market while prioritising local consumption.

The notification was issued with the approval of the Minister of Commerce and Industry and signed by DGFT Director General Lav Agarwal.