India Bans Sugar Exports Until Sept 30 to Secure Domestic Supply

India, on Wednesday, banned sugar exports with immediate effect until September 30, 2026, or until further orders.

The Ministry of Commerce & Industry announced the decision through a formal notification that shifts the export status for various sugar categories from the "restricted" list to the "prohibited" category.

The Directorate General of Foreign Trade (DGFT) confirmed that the amendment affects raw sugar, white sugar, and refined sugar classified under ITC (HS) codes.

This regulatory change comes as a measure to manage domestic supply and ensure food security over the next two years.

"The export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar) under ITC (HS) Codes 1701 14 90 and 1701 99 90 is amended from 'Restricted' to 'Prohibited' with immediate effect till September 30, 2026, or until further orders, whichever is earlier," the notification stated.

What Sugar Export Exceptions Has India Allowed Under the Ban?

Despite the overall ban, the government provided specific exceptions for certain international obligations and existing schemes.

The prohibition does not apply to sugar exported to the European Union and the United States under CXL and TRQ quotas, which will proceed according to the procedures established in relevant public notices.

Furthermore, shipments under the Advance Authorisation Scheme (AAS) will continue to be governed by the Foreign Trade Policy 2023.

The Ministry also detailed transitional arrangements for consignments already in the physical export pipeline.

Shipments where the loading of sugar onto the vessel commenced before the notification's publication date are allowed to proceed.

Can Sugar Export Restrictions Be Relaxed for Food Security Needs of Other Countries?

The DGFT also permitted exports in cases where shipping bills were filed and vessels had already berthed or anchored at Indian ports with an allocated rotation number.

"The approval for loading in such vessels shall be issued only after confirmation by the concerned Port Authority regarding berthing/anchoring prior to this Notification," the Ministry noted.

Consignments already handed over to Customs or Custodians and registered in electronic systems with verifiable evidence are also exempt from the immediate ban.

However, the government also mentioned that exports might be permitted to other countries to meet their specific food security needs, provided there is a formal request from their respective governments.

The notification highlighted that if the date of prohibition is not extended beyond September 30, 2026, the export policy for these sugar categories will automatically revert back to the 'Restricted' status.

(With inputs from ANI)