India Extends Sugar Export Curbs Till September Amid Supply Concerns

The Centre has prohibited most sugar exports till September 30, 2026, in a move aimed at safeguarding domestic supplies and keeping retail prices under control ahead of the festive season.

The decision was announced through a notification issued by the Directorate General of Foreign Trade (DGFT), which amended sugar exports from the “Restricted” category to “Prohibited” with immediate effect. The order will remain in force till September 30 or until further notice.

However, the government clarified that the restrictions will not apply to exports to the European Union and the United States under tariff rate quota arrangements. Shipments under advance authorisation schemes, government-to-government deals, and consignments already in the export pipeline have also been exempted.

India is among the world’s largest sugar producers and exporters, shipping millions of tonnes annually to markets across Asia, Africa, and the Middle East. In recent years, India has exported between 6 million and 11 million tonnes of sugar annually depending on production levels and global demand.

Major buyers of Indian sugar include Indonesia, Bangladesh, United Arab Emirates, Sri Lanka, Somalia and Malaysia.

Officials believe the latest restriction is intended to prevent domestic shortages and curb inflationary pressure on sugar prices. Concerns over uneven sugarcane output in some regions, coupled with rising local demand, are believed to have influenced the government’s decision.

The export halt is also expected to impact global sugar markets, with importing countries likely to turn towards alternative suppliers such as Brazil and Thailand to bridge supply gaps.

Industry observers say the move may temporarily affect Indian sugar mills and exporters, but consumers could benefit if domestic prices remain stable in the coming months.