Centre Restricts Sugar Shipments to Protect Domestic Supply

The Directorate General of Foreign Trade (DGFT) has prohibited the export of sugar with immediate effect until September 30, 2026, or until further orders, in a move aimed at protecting domestic availability and controlling price volatility.

According to an official notification issued by the DGFT, the export policy for sugar has been amended from “Restricted” to “Prohibited”.

However, the ban will not apply to certain exempted categories. Sugar exports to the European Union and the United States under CXL and Tariff Rate Quota (TRQ) arrangements will continue. Exports under the Advance Authorisation Scheme (AAS) and government-to-government shipments intended to meet food security requirements of other nations have also been exempted from the prohibition.

The notification further clarified that consignments already in the physical export pipeline before the order came into force would not be affected.

The decision comes amid concerns over domestic sugar availability, rising food inflation pressures, and the need to maintain sufficient reserves for local consumption and ethanol blending programmes.

Industry observers believe the move could impact global sugar trade flows, especially since India remains one of the world’s largest sugar producers and exporters. The restriction is also expected to influence domestic sugar prices and supply management in the coming months.