India's Sugar Export Ban Aims to Stabilize Market

India has banned sugar exports until September 30, 2026, to boost local supply and control prices. The ban excludes shipments to the EU and US under specific arrangements. India's sugar production increased by 7.32% in the 2025-26 season, with projections reaching 29.3 million tonnes after ethanol diversion.

In a bid to bolster domestic sugar supplies and manage escalating prices, India has enacted a comprehensive ban on sugar exports effective immediately until September 30, 2026. This significant policy shift, announced by the Directorate General of Foreign Trade (DGFT), transitions sugar export status from 'Restricted' to 'Prohibited'.

While the ban applies broadly, notable exceptions include shipments under quota arrangements with the European Union and United States, which allow specified quantities to be exported with reduced or zero customs duties. Consignments under advance authorisation, government-to-government deals, and those already in transit are also unaffected.

This regulatory move comes against the backdrop of India's soaring sugar production, which rose 7.32% to 27.52 million tonnes until April in the ongoing marketing season. Projections indicate production could soar to 29.3 million tonnes after considering ethanol diversion, as per industry insights from ISMA.