India has imposed an immediate ban on the export of raw, white, and refined sugar, effective until 30 September 2026, marking a significant shift in its trade policy. The Directorate General of Foreign Trade (DGFT) officially reclassified sugar exports from “restricted” to “prohibited,” signaling heightened concern over domestic availability.
The move is aimed at stabilizing local supply, curbing rising food prices, and safeguarding national food security amid growing uncertainty in agricultural output and global markets, The Times of India reported.
The decision is driven by multiple supply-side pressures. India is projected to produce less sugar than it consumes for the second straight year, raising alarms over sustainability. Closing stock levels are expected to fall to their lowest point since the 2016–17 season, intensifying concerns.
Additionally, weak sugarcane yields in key producing states like Maharashtra and Karnataka, coupled with potential El Niño disruptions and fertilizer shortages linked to geopolitical tensions, have compounded production risks. The government is prioritizing inflation control over export earnings in this volatile environment, according to India Today.
Despite the ban, the government has allowed limited exemptions to honor existing international commitments, The Economic Times reported. Sugar exports will continue under Tariff Rate Quotas (TRQ) to the US and EU, as well as under the CXL quota system.
Shipments under the Advance Authorisation Scheme (AAS) and government-to-government agreements for food security purposes will also proceed. Furthermore, consignments already in transit or processed through customs before the announcement will be permitted to exit.
The policy has already triggered global market reactions, with raw and white sugar futures rising sharply in New York and London. International buyers are expected to turn to competitors like Brazil and Thailand, while Indian exporters face uncertainty due to pre-committed contracts totaling nearly 800,000 tons, the financial media reported.
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Naresh Khanna – 10 February 2025
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