India has prohibited the export of sugar with immediate effect, tightening its trade policy amid concerns over domestic supply and uncertain production prospects linked to weather conditions and El Nino.
In a notification issued on Wednesday, May 13, the Commerce Ministry changed the export status of sugar from "restricted" to "prohibited", per a report by Hindustan Times. The order covers raw sugar, white sugar and refined sugar, and will remain in force till September 30 this year or further orders.
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Exemptions under quota system
The Ministry clarified that the ban will not apply to sugar exports to the European Union and the United States under CXL and TRQ quota respectively.
Apart from these quota-based shipments, a few other categories have also been kept outside the prohibition. These include exports under the Advance Authorisation Scheme, government-to-government exports, and consignments already in the physical export pipeline.
The Central Government bans the export of sugar with immediate effect till September 30, 2026, or until further orders. Directorate General of Foreign Trade (DGFT) issues a notification amending the export policy from 'Restricted' to 'Prohibited'.
— ANI (@ANI) May 14, 2026
The prohibition will not apply… pic.twitter.com/TwafGBuXRl
Relief for shipments already in process
The government has also relaxed rules for sugar consignments that had already entered the export chain before the notification came into effect.
Per the HT report, according to the notification, the prohibition will not apply to consignments that fall under three categories: they have been loaded onto the ships for exports, shipping Bill has been filed and the vessel has berthed or arrived and anchored in an lndian port, with its rotation number allocated by the port authority, where the sugar consignment has been handed over to customs or custodian is registered in their electronic system, with verifiable evidence of the date and time of such handing over.
Any shipment meeting these conditions before Wednesday's notification will be allowed to proceed.
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Global sugar prices rise after India's move
India's decision has already triggered a reaction in global markets. According to Reuters, New York's raw sugar futures climbed more than 2 per cent after the announcement, while London white sugar futures rose 3 per cent.
The report said the export curb could benefit competing suppliers such as Thailand and Brazil, allowing them to increase shipments to buyers across Asia and Africa.
The move comes at a time when sugar production in key growing regions is weakening. Concerns have also increased over the possible impact of El Nino and an uneven monsoon on the upcoming crop season.
